2023 has ushered in a year of transformation within Toronto’s real estate market. 🔄 High borrowing costs have shifted the pace of the market.
Rising Rental Market and Affordability Challenges
Despite the changes, one thing remains constant: the demand for housing in Toronto. However, the daunting hurdle of affordability has led many prospective buyers to rethink their options.
Notably, there has been a remarkable 22.3% increase in total new rental listings year over year, signalling a shift towards renting over buying.
Buyer’s Market, Bottom is Here.
In this altered real estate reality, we now find ourselves in a buyer’s market. This means more properties are available than there are buyers to snatch them up. The result? Prices are holding steady, however, it’s still 19-23% lower than the peak of 2022 price ($1,334,544).
For those who have been waiting for the bottom of the market, the time to buy is now. It’s worth noting that real estate is on sale, and astute buyers are capitalizing on fantastic opportunities. Things will become more competitive sooner than we may think.
Sellers’ Dilemma and Terminated Listings
For sellers, the situation is a bit more intricate. Motivated sellers who price their properties competitively can still achieve their goals. However, a significant portion of sellers is holding out for higher prices.
Sellers are actively trying to stabilize the market by removing listings, which has led to an intriguing surge in terminated listings, reminiscent of levels last observed in 2009.
Anticipating the Return of Buyers
As high borrowing costs continue to influence buyer demand, when rates eventually drop, expect a resurgence of buyers, with sales and prices to follow.
It’s essential to note that interest rates are projected to remain at their current levels for the first half of 2024 and may start dropping in Q3 of 2024.
Canada’s Immigration and Housing Demand
Looking beyond the immediate horizon, Canada’s record immigration numbers, plus temporary workers and international students, are exerting upward pressure on housing demand. In September, the data for aggregate non-permanent resident permits showed remarkable strength, surpassing the numbers from previous years.
Unfortunately, housing starts are failing to keep up with this demand. The inevitable consequence? It’s only a matter of time before prices start ascending once more.
Your Plan for the Future
If you’re contemplating a move in the coming year, now is the perfect time to strategize. The 2024 real estate market will present both challenges and opportunities.
Don’t let the shifting tides catch you off guard. Contact us today for a comprehensive discussion of your best approach in this evolving market.
Email or call us to get insights on your neighbourhood stats or an up-to-date appraisal of your home.
📱Phone: 647-504-0690
📧 Email: steven@mistersauga.ca
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