2023 GTA Real Estate: Strong Start, Affordability Challenges

The Greater Toronto Area (GTA) real estate market began 2023 as it ended 2022, with similar sales and average selling price numbers in January compared to December. Despite this, both sales and prices were down on a year-over-year basis, reflecting the impact of higher borrowing costs on affordability.

According to the Toronto Regional Real Estate Board (TRREB), there were 3,100 sales recorded in January 2023, which was in line with the December result but a 44.6% decrease from January 2022. The average selling price for January 2023 was $1,038,668, which was slightly lower than the December result and down 16.4% from the January 2022 average price.

TRREB President Paul Baron expressed confidence in the market, stating that the Bank of Canada‘s recent announcement of a hold on interest rate hikes, coupled with record population growth and a tight labor market, will drive housing demand in the coming months. TRREB Chief Market Analyst Jason Mercer also noted that declining short-term borrowing costs and trending lower medium-term mortgage rates will help with affordability as the year progresses.

The TRREB CEO, John DiMichele, highlighted the initiatives taken by all three levels of government to enhance housing affordability in the long term, including the City of Toronto’s $2 billion commitment to housing initiatives through its 2023 Housing Action Plan.

In conclusion, the GTA real estate market started the year on a similar note as it ended last year, with stable sales and average selling prices. The market remains impacted by higher borrowing costs, but the recent announcement by the Bank of Canada and efforts by government to enhance affordability are expected to drive demand in the coming months.

In a market that remains impacted by higher borrowing costs, real estate brokerages such as Justo can provide value by offering financial advice and mortgage solutions to clients, helping them overcome affordability challenges.

Here are key market highlights from January 2023:

Sales:
January 2023 sales totalled 3,100, down 44.6% from 5,594 last year.

New Listings:
7,688 in January 2023, down 3.7% from 7,983 in January 2022.

Active Listings:
There were 9,299 listings on the market in January 2023, compared with 4,140 in January 2022, a 124.6% increase.

Average Listing Days on Market:
29 days in January 2023, up 123.1% from January 2022 at 13 days.

Average Selling Price:
$1,038,668 in January 2023, down 16.4% from $1,242,407 in January 2022.

Detached Homes:
$1,341,848 in January 2023, down 23% on a year-over-year basis, while sales dropped by 37.6% to 1,384.

Semi-detached Homes:
Prices of semi-detached homes dropped 22.3% from last January to $1,019,668, while sales fell 45.5% to 240.

Townhomes:
Townhome prices decreased by 18% to $887,610, while sales fell year-over-year by 43.5% to 499.

Condo Apartments:
In January 2023, condo apartment prices dropped by 8.1% year-over-year to $687,696 and sales fell 52.7% to 950.

To learn how Justo can help you in your homebuying journey, or for more information about the Toronto real estate market, contact our team today.