Monday, January 30, 2023

Will the Toronto Real Estate Market Recover in 2023?

Toronto home sales and prices are set to decline significantly in 2022, but there are signs this trend, which has been ongoing since early last year, may now be coming to an end.

Jason Mercer, chief market analyst at the Toronto Regional Real Estate Board (TRREB), pointed out that while the housing market experienced significant adjustments in home sales and home prices between spring and mid-summer last year, data suggested those declines were likely to reverse. The level had started to drop.

“In late summer, and especially early fall, we’ve seen things start to settle a little bit,” he said. “And after adjusting for the time of year, both in terms of sales and pricing, we’re starting to see a flatter trend and that suggests we may be closer to the bottom of this cycle, and I think Saying that there are too many buyers, those who are still skeptical are trying to pull the trigger.

In December, an RBC Economics analysis indicated that a sharp recovery in the Toronto housing market “could be easing”, although the market is expected to remain weak for some time.

According to Mercer, the Bank of Canada’s upcoming decision on changing its benchmark interest rate, due this Wednesday, January 25, will give borrowers a good indication of how long it might take for home prices to start rising.

“Homebuyers are looking for some kind of indicator that prices are down, but that’s starting to taper off and when the Bank of Canada makes its announcement this month, whatever it may be, there’s probably some kind of forward The guidance would be an end to interest rate hikes, at least for the foreseeable future,” he said.

Despite a prolonged cooling of the Toronto housing market, there has been a trend towards a lack of new real estate, with the TRREB revealing that 2021 new real estate was down 8.2% compared to the previous year (from 166,600 to 152,873) .

According to Mercer, this is a “major concern” as the market is short of supply and immigration will continue to increase in the coming years.

It is expected that 465,000 new permanent residents will arrive in 2023, followed by 485,000 in 2024 and half a million by 2025. Hence, going forward, supply in the housing market will be the main concern.

According to Mercer, political measures proposed by federal, provincial and municipal governments over the past 18 months should increase market supply, which will be necessary to ensure that the federal immigration plan is implemented without problems.

“We really hope in 2023 and 2024 that these promises are translated into actions, not just words, because if not, it will be difficult to house all these new families.”

Nation World News Desk
Nation World News Deskhttps://nationworldnews.com
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