november market stats

GTA REALTORS® Release November 2023 Stats

Wednesday Dec 06th, 2023

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In November 2023, the Greater Toronto Area (GTA) real estate market faced persistent challenges stemming from elevated borrowing costs and uncertain economic conditions. Despite these headwinds, the Toronto Regional Real Estate Board (TRREB) reported key insights that shed light on the market's performance.

Sales in the GTA experienced a year-over-year decline of six percent, a trend attributed to the impact of inflation and heightened borrowing costs. Concurrently, the supply landscape witnessed an increase from the previous year's low point, providing prospective buyers with a more diversified range of options. This abundance of choices, however, translated to essentially flat year-over-year selling prices.

According to TRREB President Paul Baron, the strain on affordability is unmistakable, particularly within the interest rate-sensitive housing market. Yet, there is optimism on the horizon as bond yields, fundamental to fixed-rate mortgages, are on a downward trend. Forecasts also indicate potential Bank of Canada rate cuts in the first half of 2024, signaling a prospective alleviation of affordability concerns for existing homeowners and aspiring property owners.

On a seasonally adjusted monthly basis, November 2023 showed a marginal increase in sales compared to October, while new listings experienced a modest decline of 5.5 percent. The MLS® Home Price Index Composite benchmark and the average selling price, standing at $1,082,179, remained relatively stable when compared to November 2022. However, a slight decrease was noted on a seasonally adjusted monthly basis, with the MLS® HPI Composite benchmark down by 1.7 percent and the average selling price down by 2.2 percent month-over-month.

TRREB Chief Market Analyst Jason Mercer emphasized that adjustments in home prices have occurred in response to the peak in borrowing costs, providing a measure of relief in terms of affordability. Looking ahead, as mortgage rates are anticipated to decrease in the coming year and the population continues to grow, a surge in demand relative to supply is expected. This is poised to reignite growth in home prices.

Acknowledging the vital role of homes in fostering stability and recognizing the growing demand for both rental and ownership properties, TRREB CEO John DiMichele highlighted recent positive policy decisions. These include allowing existing insured mortgage holders to switch lenders without the stress test. DiMichele also stressed the importance of extending a similar approach to uninsured mortgages by the Office of the Superintendent of Financial Institutions (OSFI) to promote household and economic stability. Additionally, he emphasized the need for ongoing policy efforts to enhance housing supply.

In summary, while challenges persist, strategic policy decisions and anticipated market shifts indicate a potential turning point for the GTA real estate market in the coming year. Stay informed for updates on how these dynamics unfold and impact the local real estate landscape.

 

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