Hello friends,

The New Year has begun and if you can believe it we are already through the first month of 2023.

The residential real estate market in the Greater Toronto Area acted as expected with sales volume and average selling price in January 2023 being very similar to December’s averages. When comparing January 2023 2023 over January 2023 2022, with the impact of higher borrowing costs over the last year, prices and volumes are down considerably.

With the recent Bank of Canada announcement of a rate hike of one quarter of a basis point and stating that they would be putting a hold on future raises for the time being, buyers will be prompted to step into the market due to a more consistent interest rate environment. Population growth and a tight job market will further continue to support housing demand.

Demand for housing continues to remain strong as active listings continue to be well below seasonal levels. There are currently less than 10,000 homes of all types available across the GTA, leaving the region with only three months of inventory. If the Toronto Regional Real Estate Board did not register another listing we would be sold out of product in just three months. Three months is still considered a sellers market and even with the headlines reporting a slower market, homes continue to sell quickly and in some cases with multiple bids.

The new construction market has begun to pick up as labour, supply chain and material costs adjust back to more normal levels. With developer costs slowly coming down and partnered with aggressive selling promotions the educated and experienced buyer/investor are taking advantage of today’s current market conditions, knowing that many of these promotional opportunities will not last forever.

If you have questions please do not hesitate to reach out to me. I’m always here to help!