Let’s talk straight… 2023 was undeniably a tough year for the real estate market. Buyers held back on buying, sellers refrained from listing their homes.
In fact, 2023 property sales in the GTA were at an all-time low (since 2002) and there was a significant increase in available properties compared to the previous year.
The question everyone is asking right now, “Is the 2024 housing market in Toronto starting to experience an awakening following its year of slumber?”
What Is Actually Happening?🤔
When it comes to the real estate market, it’s really important to know where you are getting your data from, because there is a lot of conflicting info floating around. One article predicts that in 2024, home prices are going to increase by 6% while another article predicts that home prices are going to decrease by 3%.
Talk about a major discrepancy!
Predicting the future can build a lack of trust in people (especially when those predictions don’t come true). It’s a bit like watching the weather forecast claiming a huge snowstorm is coming, but then all you get is a light snowfall.
Numerous experts are uncertain about the outlook of this year's real estate market, and ultimately, the market dynamics will hinge on affordability.
The general consensus seems to be that the halt in rising interest rates is positively influencing people’s enthusiasm in real estate. But, we are going to need more than just a break in interest rates to motivate buyers and sellers to actively engage in the market.
Let’s Look Closer At The Numbers 🔢
Sales are down 18.7% since November
And up 11.5% since last year
New Listings are down 6.6% since last year
And down 63% since November
Prices are up 3.2% year over year
And up 0.23% since last month
Average sale price is $1,084,692
Average days on market = 32 Days
Change is hard to accept.
And in 2023, both buyers and sellers alike just simply couldn’t wrap their heads around the change in the market. Looking ahead, we do feel hopeful!
Buyers - Good News Ahead
In the current landscape, buyers have been afforded time to make decisions and there is more inventory to choose from. This stability in borrowing costs is bringing a sense of predictability and affordability to those seeking mortgages, making financial planning and budgeting more manageable. Moreover, the stability in housing prices has resulted in a more accessible range of affordable options. This dual effect of stable interest rates and housing prices creates a more buyer-friendly environment. It opens up opportunities for a wider range of potential homeowners, particularly first-time buyers who might have previously been priced out of the market.
Sellers - It’s All About the Long-Term Play
We would strongly encourage sellers not to get caught up in the month to month increase/ decrease of home sale prices. When deciding whether to sell, it’s hard to not look at a specific season and compare to that.
When it comes to real estate trends, it’s important to look at long term historical data. The reality is since 2002, the Toronto market has seen steady growth and significant increase year over year until 2017. Even with the dip in 2018 we continue to experience an overall increase until 2022. 2023 marked a year of stabilization for affordability in housing. If you bought before 2021, you are in a great position to sell!
*Toronto Realty Blog
The 2023 real estate market showed promising signs of stabilization, with a noticeable halt in the previously escalating housing prices. Interest rates, after a period of unpredictability, began to stabilize, offering potential buyers more predictability and affordability in their investments. These positive trends, signaling a shift towards a more balanced market, provide a hopeful outlook for the 2024 real estate landscape, especially for new and prospective buyers.
