Have We Reached The Toronto Real Estate Value Correction Floor?
Have we found the value floor? Has the Toronto real estate market found some footing to make buyers comfortable? Have lending rates paused or ceased to go upwards? Are we in a “w” recovery? What does the Toronto condo market look like in 2023?
There are countless questions that we are fielding these days. We will briefly touch on these. But if you want to talk in more detail, please let me know, and we can line up a call.
Some segments of Toronto’s real estate market have found a floor. We have seen multiple offers for luxury products and entry-level housing. At the same time, we see very few showings on other homes. It’s a spotty market, to say the least. Negotiations these days can best be described as the buyer and seller’s search for actual market value – as it’s complicated to know the actual value of real estate in the Greater Toronto Area (GTA) right now.
Are buyers more comfortable with (the current) rate stability? Yes, some are. As much as homeowners with variable rates are feeling the increased cost of debt servicing, they are navigating this so far. How long can they hold out for a real estate recovery that matches and exceeds Feb 2022? Time will tell. Either way, buyers seem to be opportunistic today.
Could this be a “w” recovery? It’s possible that the bump in sales and buyer activity is in the middle of a “w” and that a further adjustment lies ahead. Again, impossible to know. But for all of the above, we are watching closely and advising our clientele carefully and wisely.
Toronto Real Estate Market Report – January 2023
January 2023 was extremely quiet in Toronto’s central areas. There were only 498 sales, that’s it! We have never felt such a quiet marketplace. Very few listings were coming to market, so there wasn’t possible to sell much. Keep in mind that with so few trades, the values can be skewed with more lower-priced condos and houses versus higher-priced homes – our overall annual markers will provide a better sense of value increase, which you can reach out to us here to discuss.
Detached Home Values
There were 93 sales in central Toronto in January 2023. The average home sold for $1,879,728, down 22% since January 2022 (we are now seeing the year over years values come into place, there is no doubt that the correction has taken hold of our real estate market.) The average home was on the market for 24 days – below the Toronto average days on the market – this tells us that active buyers want to buy today.
Semi-Detached & Townhouse Values
There were 68 sales in central Toronto in January 2023. The average home sold for $1,362,670, down 16% since January 2022. The average home was on the market for a relatively short time compared to the TRREB days on-market average of 24 days.
➤ Check out our top reads for anyone thinking about living in Toronto:
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Toronto Condo Values
There were 337 condo sales—the average central Toronto condo sold for $826,120, down 3% from January 2022. The average condo was on the market for 31 days – condos are beginning to sit for longer as demand has cooled off in recent months. Note that the correction has not impacted Toronto condos as much as it has affected the freehold housing market.
Contact us here and read through our blogs to learn more about Toronto real estate.
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