As per the TRREB report, the number of home sales and overall average selling price of January 2023 were similar to December 2022. The housing market continues the impact of higher borrowing costs on affordability over 2022. On a year-over-year basis, both sales transactions of 3,100 and average selling price of $1,038,668 were reduced markedly by 16.4% and 44.6% respectively, compared to the record sales and selling price of January 2022.

All home types in GTA are experiencing the significant decrease in average selling prices compared to the record number of Jan 2022. It is because last year’s prices increased significantly, in particular of detached house, before they peaked in the spring of 2022.

On February 7, 2023, Tiff Macklem, governor of Bank of Canada, announced a conditional pause to further interest rate hikes after an increase of 0.25% in January. “The fact that we’ve paused may bring people back into the market. These are things we’re going to have to watch,” he said. It may stimulate those buyers and sellers who have been on the sidelines to wait for the precious timing at the peak of interest rate.

RENTAL MARKET REPORT Q4 2022

Average condo apartment rents continued to increase by double-digit annual rates in the 4th QTR 2022. The average rent for a 1-BR condo and 2-BR condo increased by 19% to $2,503 and 14.1% to $3,178 respectively.

"Strong population growth based on record immigration and robust job creation across diversity of economic sectors drove rental demand in 2022. In addition, aggressive interest rate hikes by the Bank of Canada impacted affordability for many households, prompting a shift from homeownership to rental. All of these factors will continue to support strong rental demand in 2023," said TRREB President Paul Baron.

A LOOK AHEAD AT GTA HOUSING

2023 Market Outlook Summary

• There will be a total of 70,000 sales in 2023 – below the 2022 result, but we will see marked improvement in the second half of the year.

• The average selling price will reach $1,140,000 for all home types combined. This will be up from current levels based on tighter market conditions forecast for the second half of 2023. The calendar year average price for 2023 will be four per cent lower than the 2022 average price.

• Ipsos reports that overall buying intentions were up slightly compared to last year, with 28 per cent of respondents indicating that they will consider purchasing a home in 2023.

• Listing intentions (those very likely or somewhat likely to list their home) for 2023 were up compared to 2022 for townhomes and similarly to 2022 condominium apartments and semidetached houses. Listing intentions for detached homes appear to be trending lower.