In November 2023, the Greater Toronto Area (GTA) faced challenges in its housing market due to high borrowing costs and economic uncertainty. This caused a drop in home sales compared to the previous year, while the number of homes available for sale increased from a low point last year. With more options for buyers, prices remained relatively stable.
The cost of borrowing and inflation made it harder for people to afford homes, especially in a market sensitive to interest rate changes. However, there's some hope on the horizon. Experts predict lower interest rates in the coming months, which should ease affordability concerns for both current homeowners and potential buyers.
The GTA REALTORS® reported a six percent decrease in sales compared to November 2022, with a 16.5 percent increase in new listings. Sales slightly increased from October 2023, while new listings decreased.
Home prices, indicated by the MLS® Home Price Index and average selling prices around $1,082,179 in November 2023, remained nearly the same as the previous year. However, on a monthly basis, the index decreased by 1.7 percent, and the average selling price dropped by 2.2 percent.
The adjustment in home prices was a response to the higher borrowing costs, providing some relief to buyers concerned about affordability. As mortgage rates are expected to decrease in the coming year and the population continues to grow rapidly, there's anticipated increased demand compared to supply, leading to potential growth in home prices again.
Recognizing homes as crucial places for both renters and buyers, recent policy decisions aimed at enhancing affordability have been acknowledged positively. However, more policy actions are needed to improve the supply of homes. Moreover, advocating for similar approaches in mortgage policies and pushing for increased housing supply remains a priority for the Toronto Regional Real Estate Board (TRREB).
As we wind down for the holidays, some of you may be planning for a buy/sell in the new year. Please know that we will be available this season should for any questions you may have. We're here to set you up for success in the new year!
As always if you have any questions about your particular neighbourhood, please reach out to us directly.
Happy Holidays
Diana + Ren
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