December 2023 Real Estate Market Update

by David Rizzuto

2023 was an interesting year for the Greater Toronto Area real estate market. With a slow start to the year, followed by an uptick in activity in the Spring and Summer, and steadily declining demand and prices to end off 2023, this past year presented an ever changing landscape for buyers and sellers.

The total number of home sales in 2023 totaled less than 70,000 in the Toronto Regional Real Estate Board; a record low in recent years. This is down about 12.1% compared to 2022, and down a stagering 45.8% compared to the record high in 2021. The low amount of activity is mostly attributed to affordability issues created by high interest rates. However, housing demand in the GTA still remains high. Most housing demand in 2023 was pointed towards the rental market, as Canada reached record immigration in 2023.

2023 prices saw a decline of 5.4% compared to 2022. Prices have edged slightly lower or remained stable in most markets from November to December 2023. Average days on market continue to increase across all markets, now sitting between 40 and 60 days.

Buyers in 2023 benefited from more choice, higher negotiating power, and lower selling prices, which has somewhat mitigated the impact of higher borrowing costs. Most experts believe that the real estate market is currently at its lowest point seen in recent years, and shortly, consumer confidence will strengthen which will result in more activity and rebounding prices. As interest rates begin to come down in 2024, we can expect tighter market conditions.

If you are planning on buying, selling, or investing in 2024, reach out to me. In this constantly changing market, it is important to have professional guidance on your side.

To see how prices have been affected in your area, please click the link below to get access to TRREB's December Market Statistics for all areas in the GTA. The stats are broken down by average sales price, number of homes sold, number of new listings, and average days on market for each property type; detached, semi-detached, townhouses, and condos.

https://trreb.ca/files/market-stats/market-watch/mw2312.pdf

If you want to know more about what is happening in your specific area, you can book a call with me by clicking the link below.

https://calendly.com/davidrizzuto/consultation-call?back=1&month=2023-05

December 2023 Real Estate Market Update

by David Rizzuto

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