Happy New Year! Wish you a joyous and healthy 2024.
The Toronto Regional Real Estate Board (TRREB) has unveiled the housing data for 2023. As we are aware, the past year saw a decline in sales activity, with housing affordability challenges exacerbated by increased borrowing costs and a shortage of new listings.
With 65,982 transactions recorded through the MLS in 2023, sales witnessed a 12.1% drop compared to 2022. To provide a broader perspective, this marked the lowest annual total since 2000, standing 29.4% below the 10-year average of 93,494 sales. The annual average sales price settled at $1,126,604, reflecting a 5.4% decrease from 2022.
The standout narrative in housing for the year was the combined effects of elevated borrowing costs and a moratorium on foreign buyers, leading to decreased sales and a shift toward buyer’s market conditions. The supply of homes, measured in months of inventory, increased throughout the summer and fall, surpassing 4 months by September—figures not observed since Fall 2008.
Active buyers enjoyed increased choices and reduced competition throughout 2023, allowing many to negotiate more favorable terms and lower selling prices, mitigating the impact of higher borrowing costs.
While sales volume and pricing captured the spotlight this year, supply remains a persistent challenge in the market. New listings for the year totaled 142,233, indicating a 7.0% decline compared to 2022.
In December, the month recorded 3,444 sales, marking an 11.5% increase year-over-year. The average sales price rose to $1,084,692, up by 3.2%. New listings decreased by 6.6%, and with active listings now at 10,370, there is currently a 3.01-month supply within the TRREB region.
As we enter a new year, the real estate landscape continues to evolve. The Bank of Canada's anti-inflation efforts seem to be tapering off, interest rates are stabilizing, and the GTA experiences record immigration, sustaining demand for homes to rent or purchase.
If buying or selling real estate is one of your goals for this year, please reach out to Anastasia Sitenko. I am delighted to offer insights into the current real estate environment.