January 5, 2024 | Buying
It’s been a tough year for many households seeking to purchase a home in the Greater Toronto Area (GTA). With high mortgage rates and less than 70,000 home sales in 2023, the dream of home ownership seems unattainable for many. However, we understand the importance of having a stable and affordable place to live, especially in the face of record immigration in the upcoming years.
In 2023, there were 65,982 home sales reported through TRREB’s MLS® System, which is a 12.1% decrease compared to 2022. We empathize with those who have struggled to find a suitable home to rent or purchase in the GTA. Despite the flat-down trend in sales and new listings over the past decade, we remain hopeful that borrowing costs will decrease in 2024, leading to an increase in home sales.
The average selling price for all types of homes in 2023 was $1,126,604, which is a 5.4% decline compared to 2022. However, the average selling price slightly increased on a seasonally adjusted monthly basis. We recognize that buyers in the market have had to navigate difficult circumstances and make tough decisions. Nevertheless, we are encouraged by the fact that in 2023, buyers had more choices and were able to negotiate lower selling prices. This helped alleviate some of the impact of higher borrowing costs.
Looking ahead, we hope that the upcoming months will see a renewed growth in home prices. We believe that a tighter market condition, coupled with a corresponding increase in the number of homes available to rent or purchase due to record immigration in the GTA, will provide people with the assurance that they can plan their lives and future with the certainty of having a stable and affordable place to live.