02/04/2023
As we moved from 2022 to 2023, the GTA
housing market unfolded as it was expected.
The number of January sales and average
selling price were similar to December 2022.
Year-over-year, both sales and prices were
down, highlighting the impact of higher
borrowing costs on affordability.
Home prices declined as homebuyers sought to
mitigate the impact of substantially higher
borrowing costs. While short term borrowing
costs increased again in January, negotiated
medium-term rates, like the five year fixed rate,
have actually started to trend lower compared
to the end of last year. This is expected to
continue to help affordability through 2023.
The Bank of Canada announcement that
interest rate hikes are likely on hold for the
foreseeable future will prompt some buyers to
move off the sidelines in the coming months.
Record population growth and tight labour
market conditions will continue to support
housing demand.
All three levels of government have announced
policies to enhance housing affordability over
the long term, including many initiatives
focused on increasing housing supply in the
ownership and rental markets - Toronto City
Council supports the Mayors 2023 Housing
Action Plan as part of the Citys overall $2 billion commitment to housing initiatives.
