Happy New Year. We hope you have a happy and healthy 2024.
The Toronto Regional Real Estate Board (TRREB) has released the housing data for 2023. As we know, sales activity was down this past year, with housing affordability issues being exacerbated by higher borrowing costs and a lack of new listings.
With 65,982 transactions reported through the MLS in 2023, sales were down 12.1% compared to 2022. For broader context, this was the lowest annual total since 2000, and 29.4% below the 10-year average of 93,494 sales. The annual average sales price was $1,126,604, a decrease of 5.4% from 2022.
The housing story of the year was the combined impacts of higher borrowing costs and a moratorium on foreign buyers, which resulted in lower sales and a shift to buyer’s market conditions. The supply of homes, as measured in months of inventory, moved higher through the summer and fall. By September, inventory exceeded 4 months; these are numbers not seen since Fall 2008.
Active buyers benefitted from more choice and reduced competition throughout 2023, allowing many to negotiate more favourable terms and lower selling prices. This helped to alleviate some of the impact of higher borrowing costs.
While sales volume and pricing received the greatest attention this year, supply continues to challenge the market. New listings for the year totalled 142,233, down 7.0% compared to 2022.
In December, there were 3444 sales for the month, up 11.5% year-over-year. The average sales price was $1,084,692, up 3.2%. New listings were down 6.6%, and with active listings now at 10,370, there is currently a 3.01-month supply within the TRREB region.
We are now at the beginning of a new year and the market continues to evolve. The Bank of Canada’s war on inflation appears to be coming to an end, interest rates are beginning to level off, and record immigration in the GTA continues to fuel demand for homes to rent or purchase.
If buying or selling real estate is one of your goals for this year, please contact a member of the Harvey Kalles sales team. We will be happy to provide clarity around what’s happening within the current real estate environment. Harvey Kalles Real Estate has been in business since 1957 and we bring a wealth of experience to the real estate market.
