Toronto & GTA
Impact of High Borrowing Costs
The Greater Toronto Area (GTA) real estate market in November 2023 showed a continued impact from high borrowing costs and uncertain economic conditions. This has led to a noticeable effect on housing affordability.
Sales and Listings
Compared to November 2022, there was a 6% decline in home sales, while new listings increased by 16.5%. This change indicates a shift from last year’s low supply, offering more options for buyers in the market.
Despite these changes, the average selling price of homes ($1,082,179) remained relatively unchanged from the previous year. However, there was a slight month-over-month decrease in both the MLS® Home Price Index Composite benchmark (down 1.7%) and the average selling price (down 2.2%).
TRREB President Paul Baron notes that inflation and high borrowing costs have challenged affordability, but there’s potential relief ahead. Expectations of Bank of Canada rate cuts in early 2024 could ease these challenges. Additionally, TRREB Chief Market Analyst Jason Mercer anticipates that as mortgage rates potentially decrease in 2024, along with continued population growth, demand is likely to surge relative to supply, eventually fostering growth in home prices.
Policy and Housing Affordability
TRREB CEO John DiMichele highlights recent policy decisions aiding housing affordability, such as allowing insured mortgage holders to switch lenders without a stress test.
What to say about the November house market? It had good agents analyzing and reviewing the activity on a daily basis. Suddenly everything seemed to hit a pause button with many wonderful listings seeing no showings and buyers just disappearing. Downward shifting in prices has both Buyers and Sellers watching carefully what is happening in their local areas.
The good news? Towards the end of the month and into December we began to see an increase in activity and there are some wonderful opportunities happening in the market. Now more than ever is the time to ask questions of a trusted real estate professional who can help you understand what is happening in your area with up to the minute numbers and comparable listings that truly reflect what is happening.
Have you been thinking about moving? Do you wonder if now is the right time to buy or sell? Wondering what your home is worth today with the shifting real estate market? Perhaps you’ve been searching for that one-of-a-kind property, but just can’t find it?
We can help answer your questions, provide you with a free no-obligation Home Valuation and help you find that perfect property.