Market Watch - February 2023

Some interesting news about the housing market in the Greater Toronto Area (GTA):
The number of sales was down quite a bit in February 2023 compared to the pre-rate hike levels of early 2022. But, the number of new listings also dropped substantially year-over-year.

According to the Toronto Regional Real Estate Board (TRREB) President Paul Baron, the drop in home prices over the last year has helped offset the impact of higher borrowing costs. Many homebuyers have also decided to purchase a lower priced home to help with this.

GTA REALTORS® reported 4,783 sales through TRREB’s MLS® System in February 2023 – down 47 per cent compared to February 2022. The number of new listings entered into the system was down by a similar annual rate of 40.9 per cent to 8,367.

Total New Listings

-40.9% compared to last year

?The TRREB Chief Market Analyst Jason Mercer said that increased demand will run up against a constrained supply of listings and lead to increased competition between buyers. This will eventually lead to renewed price growth in many segments of the market, especially those catering to first-time buyers facing increased rental costs.

Average Selling Price

-17.9% compared to last year

It's interesting to note that the average selling price for February 2023 was $1,095,617 – down 17.9 per cent compared to February 2022. However, on a monthly basis, the average price followed the regular seasonal trend, increasing relative to January 2023.

Overall, there are a lot of factors at play here, and it will be interesting to see how things develop in the housing market as we move forward. What do you think about all of this? Are you considering investing in your future with a new home purchase?

See full report HERE