Toronto Real Estate Market Update: January 2023
The real estate market in Toronto saw some fluctuations in 2022, but Toronto home prices ended the year pretty much where they began the year.
Average prices were down 3.4% from November 2022. However, it's important to note that year over year prices remained nearly identical.
The number of homes sold was down 51% compared to the same period in the previous year, but the absorption rate of new listings was a promising 77%. If this trend continues, it will lead to upward pressure on prices in 2023.
The number of qualified buyers seems to be pretty much fixed right now so the number of new listings will tell the story of how 2023 will unfold for Toronto home buyer and sellers.
Toronto Condo Market
Condo sellers had a reason to cheer in December. Average condo prices rose almost 1% over November with an absorption rate of 71% after months of inventory piling up and listings going stale. However, it's important to keep in mind that one month's results do not determine the overall trend in the market. A lot will depend on the number of listings that enter the market in the coming months.
2022 was a tumultuous year and despite mortgage rates skyrocketing average condo prices finished the year with a modest 1.5% nudge upwards.
It seems the worst of the rate hikes are behind us and 2023 will see buyer confidence return. There will be plenty of opportunities for Buyers in Q1 and Q2 of 2023 but my fear is that FOMO will rear it's ugly head and bidding wars will return