GTA Housing Market: Hot or Not?

Are you feeling the heat in the GTA housing market? If you’re thinking of buying or selling a home in the Greater Toronto Area, you might be wondering what’s going on with the prices, sales, and listings. Well, don’t sweat it, because we’ve got you covered with the latest stats and insights from the Toronto Regional Real Estate Board (TRREB).

The Numbers Don’t Lie

Let’s start with the facts. Here are some of the key figures from TRREB’s report for June 2023:

• Home sales were up by a whopping 16.5 per cent compared to June 2022, reaching 7,481 transactions. That’s a lot of people moving and shaking in the GTA!
• The average selling price was up by 3.2 per cent to $1,182,120. That’s right, over a million bucks for an average home in the GTA.
• The MLS® Home Price Index (HPI) Composite benchmark, which measures the change in value of different types of homes over time, was down by 1.9 per cent year-over-year - the lowest annual rate of decline in 2023. That means that home values are still dropping, but not as fast as before.
• The number of new listings was down by three per cent year-over-year, indicating a persistent lack of inventory. That means that there are not enough homes for sale to meet the demand from buyers.

These numbers show that the GTA housing market is still hot and spicy, with buyers facing fierce competition and sellers enjoying strong demand and high prices. However, there are also some signs of cooling and calming, as the market adjusts to higher borrowing costs and inflation expectations.

What’s Behind the Numbers?

So, what’s driving the GTA housing market? Well, according to TRREB’s experts, there are several factors at play.

First of all, there’s the demand for ownership housing, which is stronger than last year, despite higher borrowing costs. People want to own their own homes, especially after spending so much time indoors during the pandemic. Plus, with a resilient economy, a tight labour market, and a record population growth, there are more people who can afford to buy homes in the GTA.

However, home sales were hampered last month by uncertainty surrounding the Bank of Canada’s outlook on inflation and interest rates. People were not sure if they should buy now or wait for better deals later. Also, a persistent lack of inventory likely sidelined some willing buyers because they couldn’t find a home meeting their needs. Simply put, you can’t buy what is not available.

Secondly, there’s the supply of new housing, which is lagging behind the demand. GTA municipalities continue to struggle in bringing new housing online at a pace sufficient to make up for the current deficit and keep up with record population growth. Leaders at all levels of government, including the new mayor-elect of Toronto, have committed to rectifying the housing supply crisis. We need to see these commitments coming to fruition immediately, or we will continue to fall further behind each month.

Thirdly, there’s the affordability issue, which is also hampered by taxation and fees associated with home sales and construction as well as the general level of taxation impacting households today. Going forward, we need to look at all of the factors influencing the household balance sheet and people’s ability to house themselves.

What Does It Mean for You?

So, what does all this mean for you if you’re looking to buy or sell a home in the GTA? Well, it depends on your situation and goals.

If you’re buying, you need to be prepared for a competitive and tight market. You need to get pre-approved for a mortgage and have a clear budget and wish list. You need to be flexible and realistic about what you can afford and what you need in a home. You need to be ready to act quickly when you find a suitable property, but don’t rush into a decision without doing your due diligence.

If you’re selling, you need to be prepared for a strong and favourable market. You need to price your home competitively and strategically based on the current market conditions and comparable sales. You need to make sure your home is in good condition and shows well. You need to be open to feedback and offers from potential buyers, but don’t settle for less than what your home is worth.

In both cases, you need to work with a professional REALTOR who can guide you through the process and represent your best interests. A REALTOR can help you find the right home or buyer, negotiate the best deal, handle the paperwork, and deal with any issues that may arise.