It’s been a long three years of turbulent Toronto Region real estate markets, but demand is slowly growing in some Greater Toronto Area (GTA) cities, especially for semi-detached, townhouse, and condo apartment property types in more affordable price points, and inventory levels are growing to support the demand.
Month-over-month, sales were down by just 0.5% overall in the Toronto Region according to the Toronto Regional Real Estate Board (TRREB), however, cities including Oakville, Brampton, and Whitby each experienced a slight increase in sales numbers month-over-month.
New Listings in January 2023 Are Hot on the Heels of January 2020 Levels
Despite the cold winter season that often discourages buyers and sellers alike from entering the market, new listings have increased by a staggering 88% since December. This January, 7,688 new listings entered Toronto and GTA markets, an increase of 88% month-over-month, compared to the 4,074 newly listed properties in December 2022.
This level of new listings is right on the heels of the numbers in January 2020, which was eight rate hikes and one pandemic ago. There were 7,836 new listings in January 2020, just 1.9% more than today’s current levels. Zoocasa Managing Broker, Claudio Castro explains, “As the most recent Bank of Canada rate announcement gave buyers and sellers alike some hope that rates may be held in the future, sideline buyers are finally entering the market again, and sellers are taking notice.” In terms of months of inventory, January 2023 was right in line with the two months of inventory that was available in January 2020.
Buying Power is Finally on the Upswing
January prices were similar to December. Detached prices have come down slightly in the 416 and 905 to $1,486,124 and $1,298,809 respectively, a decline of 9.5% and 1%. However, the average price of a townhouse increased slightly month-over-month in the 416 and the 905, and semi-detached and condo apartments in the GTA are on the same upward trend in price, up 1.7% to an average of $949,216 and 2.1% to $646,715 respectively. “Buyers are favouring properties under the $800,000 mark, and as fixed rates continue to trend down and provide more buying power, we may see these prices climb along with demand,” Castro continued. TRREB President Paul Baron echoes this sentiment, stating, “Home sales and selling prices appear to have found some support in recent months. This coupled with the Bank of Canada announcement that interest rate hikes are likely on hold for the foreseeable future will prompt some buyers to move off the sidelines in the coming months. Record population growth and tight labour market conditions will continue to support housing demand moving forward.”
Sideline buyers: it’s your year and we’re here to make your buying dreams a reality. Looking to discuss mortgage rates, affordable cities, and what your budget can buy you? Let’s talk! Give us a call today to speak to one of our agents in your area. Enjoying our content? Subscribe to our free weekly newsletter to get Canadian real estate market insights, news, and reports straight to your inbox.