Are Toronto Home Prices Dropping In 2023? Helpful Advice
Whether you’re a first-time homebuyer or seasoned investor, if you’re thinking about buying a house or condo in Toronto in 2023, you may be wondering whether Toronto home prices are dropping, staying steady or rising.
Toronto Real Estate Board Stats
According to the Toronto Real Estate Board (TRREB), the average price of a home in the Greater Toronto Area (GTA) was $1,079,395 in November 2022. This represents a 7.2 percent drop from the same month in 2021.
This decrease was even more pronounced for certain types of properties. The average selling price of a single-detached home in the GTA was $1,390,162, while the average for a condo was $708,636.
Toronto Home Prices May Fall Further In 2023
Many experts believe that the trend of Toronto home prices dropping in virtually all neighbourhoods will continue in 2023. RE/MAX, for example, forecasts that the average price of a house in the GTA will fall nearly 12% year-over-year in 2023. This would represent a difference of around $142,000 compared to 2022. Royal LePage, on the other hand, predicts a more modest 2% year-over-year decrease, with the average price of a home in the fourth quarter of 2023 hitting $1,056,734.
Overall, while home prices in Toronto may be dropping in 2023, it’s important to keep in mind that there are many factors that can influence the Toronto real estate market. Experts believe that the bulk of the price correction has already occurred and that a return to more normal trends is on the horizon.
Competition Will Increase
However, it’s also likely that buyers will encounter increased competition when they re-enter the buying cycle. Specifically in the more affordable condo segment. A significant boost in inventory will be needed in the coming years to satisfy demand along with an increasing number of newcomers needing homes.
So, if you’re thinking about buying a house or condo in Toronto in 2023, it’ll be important for you to keep an eye on the market. And you’ll need to be prepared for a competitive environment again. Don’t wait too long for prices to drop further, or you may find yourself priced out of the market once again.