January Real Estate Updates

Monday Feb 06th, 2023


As we moved from 2022 into 2023, the Greater Toronto Area (GTA) housing market unfolded as expected. The number of January sales and the overall average selling price were similar to December 2022. On a year-over-year basis, both sales and prices were down markedly, continuing to highlight the impact of higher borrowing costs on affordability over the last year.

The latest data from the Toronto Region Real Estate Board (TRREB) shows that the average resale price across all property types was $1,038,668 in the first month of 2023, compared to $1,051,216 in December 2022.

The number of transactions in January (3,100) was comparable to the previous month (3,117) but still down more than 44.6% from the same month in 2022.

The steep cost of borrowing and the accelerated run-up of prices last January and February when the market peaked account for the extraordinary drop last month, said Jason Mercer, the real estate board’s chief market analyst.

“While short-term borrowing costs increased again in January, negotiated medium-term mortgage rates, like the five-year fixed rate, have actually started to trend lower compared to the end of last year. The expectation is that this trend will continue, further helping with affordability as we move through 2023,” he said.

Real estate board president Paul Baron said that the central bank’s signal last week that interest rate hikes may be at an end for the foreseeable future will nudge some buyers back into the market.

Detached homes continued to see the biggest price plunge last month, falling 23% across the region, with a slightly steeper decline in the 905 communities. Condo prices also fell 8% annually in January with a 10% drop in the 905, compared to about 6% in the City of Toronto


“All three levels of government have announced policies to enhance housing affordability over the long term, including many initiatives focus on increasing housing supply in the ownership and rental markets. Most recently, we were encouraged to see Toronto City Council support the Mayor’s 2023 Housing Action Plan as part of the City’s overall $2 billion commitment to housing initiatives,” said TRREB CEO John DiMichele.


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