The Greater Toronto Area (GTA) Housing Market developed as anticipated when 2022 gave way to 2023. Both the total number of sales in January and the average selling price were comparable to December 2022. However, sales and prices both experienced significant year-over-year declines. This highlights the continued negative effects of rising borrowing costs on affordability over the past year.
Recently, there seems to have been some support for home sales and selling prices. Moreover, in the upcoming months, some purchasers will come off the sidelines as a result of this and the Bank of Canada’s declaration that interest rate hikes are probably on pause for the foreseeable future. Furthermore, future home demand will be supported by record population growth and a tight labor market.
- Most Expensive Housing Market in Greater Toronto Area (GTA)
- Fastest Growing Housing Markets in Greater Toronto Area (GTA)
- Fastest Selling Housing Markets in Greater Toronto Area (GTA)
- Highest Turnover Housing Markets in Greater Toronto Area (GTA)
- Budget Housing Markets in Greater Toronto Area (GTA)
Before delving deep into the data and statistics, let us walk you through the summary of the Greater Toronto Area (GTA) Housing Market in January 2023:
- The average selling price for January 2023 at $1,038,668 was slightly lower than December 2022.
- In January 2023, there is a decline of 17% in the average property listing price as compared to that in January 2022.
- When compared to December 2022, there is a drop in listings by 4%.
- Prices of Condominium units recorded a YoY fall of 8.1%.
- There is a 38% YoY decline in terms of revenue from the sales of properties when compared to that January 2022.
The summary will sound more meaningful to you when you go over the actual figures. Therefore, now let us explore the GTA housing market to help you select the best location in the region for your upcoming housing project or residence.
Most Expensive Housing Market in Greater Toronto Area (GTA)
Caledon, King, Aurora, Vaughan, and Oakville are the regions in the GTA with the most expensive housing markets. The average price of housing properties in these regions is as follows:
There are now 110 housing properties for sale in Caledon, including 81 houses, 4 condos, and 14 townhouses. It is noteworthy that all house types in Caledon sold on average for $1.3M, which is 28% lower than in February 2022. Moreover, it’s worth mentioning that there are 10 unique neighborhoods of Caledon that includes the attractive Mono Hills and the Rural Caledon. Additionally, Caledon has a very little unemployment rate, i.e., 7.3% – this implies that the city offers good employment opportunities. Isn’t this quite enticing a fact to settle in Caledon?
Whereas the average selling price of housing properties in Oakville is $1.4M. Please note that this is down by 22.7% as compared to January 2022. The presence of Iroquois Ridge, Westoak Trails, and Clearview in the neighborhood makes this region naturally attractive. Take note that this region has led the charts during the final quarter of 2022. However, due to certain socio-economic and immigration disruptions along with the Bank of Canada’s announcement on mortgage interest rates, this region faced a setback in the first month of 2023.
Fastest Growing Housing Markets in Greater Toronto Area (GTA)
2023 welcomed drastic falls in the GTA housing market. All have negative indicators that are strongly appealing to the condition of the Canadian housing market at present.
Fastest Selling Housing Markets in Greater Toronto Area (GTA)
East Gwillimbury, Ajax, Newmarket, Whitchurch-Stouffville, and Aurora are the fastest-selling housing markets in the GTA. Ajax and Aurora were both in the top 5 cities with the fastest-selling housing markets in November 2022. Check out the average day on the market of the properties in the mentioned regions below:
|Days in Market
This signifies that within 15 days, a property listed in the housing market of East Gwillimbury is sold out. One of the reasons that East Gwillimbury is recording such fast sales is due to the price of the properties listed. It is coming in the affordability range of many home buyers in Canada after the predicted sudden decline in Canadian Real Estate prices in January 2023. It is worth mentioning that Ajax, which used to lead the list in terms of the most expensive housing market in GTA now ranks 21st in the same category. This can give a clear indication of the fall in housing prices in Canada, thereby, increasing the mortgage success rate and affordability of many home buyers in Canada.
Highest Turnover Housing Markets in Greater Toronto Area (GTA)
This section very clearly responds to the current price decline scenario of the GTA housing market. For illustration, the rank of Ajax in the list of prices of properties is 21 and that of Richmond hill is 7. If the listed prices are low, it is very obvious that those properties will yield a high turnover. This gives Ajax the highest turnover of 35.1%, whereas, the turnover of properties in Caledon, which hold the most expensive GTA housing properties in January 2023, is 12%.
Budget Housing Markets in Greater Toronto Area (GTA)
Depending upon your requirements, you must prepare your budget, on which your affordability can be defined. It may be that you are looking for a detached house, a townhouse, or a condo. Let us check on the prices of the housing properties, category-wise to ease out your evaluation process for buying property in the GTA.
The locations listed above are the most preferred in the GTA by realtors and home buyers. In the month of January 2023, the pricing trend can be analyzed from the table above. If you want to pursue your home purchase process on a budget, then the properties listed in the above table will surely help you.
Therefore, it is highly recommended that you ascertain the reason for your property purchase so that you can find the best deal in the housing market of the Greater Toronto Area.
The following are some of the FAQs related to the housing market in the Greater Toronto Area that may resolve some more of your queries:
Q: How is the Greater Toronto Area housing market?
A: In the Greater Toronto Area (GTA), the average home sold price fell 16% from the previous year to $1,038,668 in January 2023. However, this is due to the impact of various economic factors that are influencing the banking mortgage policies of Canada.
While the Bank of Canada may be delaying further rate increases for the time being, the effects of impulsive rate increases in 2022 are still being felt. In January 2023, there were 3,100 home sales in the Toronto housing market, a 45% drop from the 5,636 sales in January 2022. The prime rate went from 2.45% to 6.45% in 2022, indicating a rise in the cost of borrowing for prospective homebuyers.
Keep visiting our blog space to get the latest trends in the Canadian Housing Market.
Q. Are prices going down in the Greater Toronto Area housing market?
A. The average home price in the Greater Toronto Area (GTA) touched a 23-month low of $1,038,668 in January 2023, signaling the beginning of the year with yet another decline in prices. This indicates that prices in the GTA housing market have dropped by 16% year over year, which is a major drop for homeowners who are coping with high mortgage rates and rising living expenses. The average home price in the GTA is now at its lowest level since January 2021, when it was $967,885.
Q. How is the Greater Toronto Area housing market for First Time Buyers?
A. If you are a first-time home buyer in Canada, GTA is relatively a better place to move in for your first dream home. The most important reason behind this is the variety you can get in the designs and architecture of the houses in the region. You will surely find your most preferable type of residence.
Q. How is the Greater Toronto Area housing market for Investors?
A. Because of its strong rates of appreciation, low vacancy rates, and high demand for properly maintained properties, the GTA is generally regarded as a desirable investment location. There are many excellent rental neighborhoods and houses to be discovered, but it’s not as straightforward as claiming that every single property in the region is worthwhile to buy.
Q: Is now a good time to buy or sell property in the GTA?
A: Right now, if you’re considering selling, speak with an agent first. In other neighborhoods, business is still booming, and prices are rising month over month with lots of competition. Many, though, are observing significant decreases in prospective purchasers.
The greatest effect is being seen in areas where home prices are lower since purchasers there are likely to be financing a larger portion of the purchase price, making it more difficult for them to purchase as a result of increased interest rates.
Q. Is it affordable and wise to buy a Condo in the GTA?
A: The popularity of condos comes from the fact that they are priced more competitively than detached homes; for many buyers, they represent the only practical means of entering the housing market, and they haven’t experienced the same price declines as other kinds of properties.
Q: When is the best time to buy property in the GTA?
A: For this, you have to check the market trends and real estate news regularly. Check your budget and the ongoing prices. Whenever you feel it is right to proceed, you may proceed with the property purchase. This process is wise for home buyers, but for the real estate business, you have to be on top of the market updates. Keep visiting this space to get the most accurate GTA real estate market trends.
Q: What if I face a shortage of funds for the housing I selected in GTA?
A: The wisest decision will be to hold on for a few more days until you manage to save the funds required, or wait for a decline in the prices of the housing you are willing to buy. But, if you are in a hurry, you can go for a mortgage. Consult with a financial organization that, based on your credit history, can lend you the amount you are falling short of. You can also go for a second mortgage if you already own a house in Canada. For expats or non-residents in Canada, there is the option of a First-time Home Buyer Incentive.
Q: Within how many days is the purchase process of a house or condo completed in the GTA?
A: There is truly no such thing as a “normal” real estate closing; we’ve witnessed closings that lasted as long as a year. Depending on their respective financial positions and personal circumstances, the buyer and seller decide when they want to close when an offer is made. In Toronto, closings typically take place between 30 and 90 days.