The Toronto housing market is showing signs of recovery as prices start to climb again, according to the Toronto Regional Real Estate Board. Last month, housing prices in the area increased by four percent compared to March, with sales also rising by around nine percent. Although sales were slightly lower compared to the same period last year, the decrease in new listings fueled competition among buyers. The market is shifting as potential homeowners adjust to higher borrowing costs and take advantage of lower selling prices.
Lack of supply fuels frustration among buyers
Real estate agents have noticed a change in the market in recent months. Many buyers have come to terms with the higher costs of borrowing and are seizing the opportunity to purchase homes at lower prices. However, the limited supply of available listings has led to frustration among buyers, causing multiple offer situations to become more common.
April sees a decline in new listings and a rise in prices
New listings in April were down by over a third compared to the previous year, resulting in a significant decrease in supply. The average price of homes also dropped compared to last year, but it increased by approximately four percent from March. Detached homes and semi-detached properties experienced the most significant decline in prices, while townhouses and condos also saw decreases.
Mixed predictions for the future of the market
Experts have mixed opinions on what lies ahead for the Toronto housing market. Jason Mercer, the chief market analyst at the Toronto Regional Real Estate Board, expects an increase in demand for home ownership throughout 2023. He suggests that buyers who were previously deterred by interest rate hikes are now considering different types of homes or exploring different areas. Additionally, the strong regional economy and job creation in various sectors contribute to the positive outlook.
James Laird, co-CEO of Ratehub.ca, believes that the decreases in home prices may have reached their lowest point and could stabilize or slightly increase in the coming months. This forecast is based on the stability of mortgage rates. However, Tony Stillo, director of economics for Canada at Oxford Economics, predicts that the spring pick-up in the market will fade as the country heads towards a recession. Stillo suggests that prices may bottom out later this year or in early 2024.
The future of the Toronto housing market remains uncertain, with various factors influencing its trajectory. However, buyers and sellers alike should stay informed and be prepared for potential changes in the coming months.
