June 2023 Newsletter

 

 

 

From the Toronto Regional Real Estate Board:

The Greater Toronto Area (GTA) housing market continued to tighten in April 2023. On a year-over-year basis, sales edged lower compared to April 2022, but new listings were down by more than one-third. Fewer listings relative to sales meant there was more competition between buyers, supporting an improvement in selling prices since the beginning of this year.

“In line with TRREB’s outlook and recent consumer polling results, we are seeing a gradual improvement in sales and average selling price. Many buyers have come to terms with higher borrowing costs and are taking advantage of lower selling prices compared to this time last year. The issue moving forward will not be the demand for ownership housing, but rather the ability to meet this demand with adequate supply. This is a policy issue that requires sustained effort from all levels of government,” said TRREB President Paul Baron.

The MLS® Home Price Index (HPI) Composite Benchmark was down by 12.1 per cent year-over-year in April 2023. Compared to March, the benchmark price was up on an actual and seasonally adjusted basis. The average selling price in the GTA was $1,153,269 in April 2023 – down 7.8 per cent compared to $1,250,704 in April 2022. The average selling price also increased compared to March, both on an actual and seasonally adjusted basis.

“As demand for ownership housing has picked up relative to supply, we are seeing renewed upward pressure on home prices. For a short period of time, higher borrowing costs trumped the impact of the constrained housing supply in the GTA. Renewed competition between buyers is once again shining the spotlight on the persistent lack of listings and resulting impact on affordability,” said TRREB Chief Market Analyst Jason Mercer.

 

Sometimes the numbers do not tell the whole story. When homeowners see double-digit declines in the number of sales they may not realize that this actually works in their favour. The number of sales has dropped because there aren’t enough listings to satisfy the demand by buyers.

Also, there are still price declines when looking at the year-over-year statistics, but again this is misleading. For four straight months, prices have been steadily rising. In fact, they are up an average of 11% from the start of 2023! And compared to the top of the market (say, February 2022) prices have regained all losses except between 3 - 8%. 

So if you are still believing that you missed out on selling last year, I can reassure you of a few facts that can be proven with the statistics:

1. The average home in York Region sold for 110% of listing price - signaling that bidding wars among buyers are pushing prices ever higher. 

2. The average time on market is 10 days - again an indication that the dominant pricing strategy is to hold back on accepting offers about a week after a listing hits the market. 

3. If you sell and then buy a smaller home or a condo you will still have a substantial nest egg left for retirement. 

Check out the numbers for yourself:

• Sell your detached house in the 905 > Buy a semi-detached = $353,659 added to “Retirement Freedom Fund”

• Sell your detached house in the 905 > Buy a townhouse = $503,137 netted for investment

• Sell your detached house in the 905 > Buy a condo apartment = $765,140 to retire on! (By the way, at a conservative 6% return on investment would generate more than $45K to fund your lifestyle!)

Conclusion: 

The market statistics are only relevant and useful if you know how they apply to you. Contact me by clicking the button below, and I will provide you with an up-to-date report on your home’s real time market value. I look at a combination of:

• Recent comparable property listings and sales;

• Regional and community market conditions;

• Forecasted price trends for properties just like yours.

   

  This is always without cost or obligation. Simply click the link below, and I’ll get started!