Toronto Real Estate Market in 2023
The Toronto real estate market has been through a lot of ups and downs in the past few years. However, experts suggest that the second half of 2023 should be characterized by an increase in demand for ownership housing, supported by lower fixed mortgage rates, a relatively resilient labor market, and record-low unemployment rates [1].
Despite these promising projections, the Toronto real estate market has seen a decline in property prices over the last year. According to recent data from the Toronto Region Real Estate Board (TRREB), the average price for all property types in November 2022 was $1,079,39 compared to $1,162,564 in November 2021, a decrease of 7.2%. November homeownership market activity continued to be driven by the impact of rising interest rates on affordability [3].
The impact of interest rates on the Toronto real estate market is significant. An interest rate hike may have negative implications on the housing market as it affects affordability, which could reduce demand, ultimately leading to a decline in prices. Experts have predicted that rising interest rates may lead to a decline in real estate prices in Toronto [2].
Despite the predicted decline in prices, the second half of 2023 is expected to see an increase in demand for ownership housing. This is because the labor market remains relatively resilient, and unemployment rates remain low [1].
The Toronto real estate market is expected to experience a boost in demand for ownership housing in the second half of 2023, driven by lower fixed mortgage rates, a relatively resilient labor market, and record-low unemployment rates. However, the impact of interest rate hikes on affordability could lead to a decline in property prices. The TRREB data shows a decline in property prices in recent times, driven by the impact of rising interest rates on affordability. Thus, it’s important for buyers to keep these factors in mind while navigating the Toronto real estate market in 2023.
