Market Update: December 2023

2023 saw record immigration into Canada, two more over night rate increases and a surging rental market. but how did the numbers look for sales n the GTA this past year, lets take a look. Although we had record of immigration in Canada, most opt to rent which put a lot of upward pressure on rental prices. The two increases in the overnight rates in June and July led to affordability issues. The result was 66K sales in 2023, a 12.1% decline compared to 2022 & the least amount sales we have had since 2000. Despite an uptick during the spring and summer, the number of new listings also declined in 2023. The 142K new listings was a 8% decrease from 2022.  The trend for listings has been largely flat-to-down over the past decade, which is problematic due to a steadily growing population. Although there were fewer sales, how did the market perform? The average selling price for all home types in 2023 was $1,126,604, a 5.4 per cent decline compared to 2022. Although 2023 was hard for real estate here in the GTA, there were some that benefitted. buyers who were active in the market benefitted from more choice throughout 2023, which allowed many of them to negotiate lower prices. However, 20024 may look much different than 2023.  Borrowing costs are expected to trend lower in 2024 which will result in Lower mortgage rates. If you couple that with a relatively resilient economy, we should see a rebound in home sales this year

Here is to 2024!