Toronto Home Buyer's Guide: June 2023
As we welcome the summer of 2023, Toronto's real estate landscape continues to be a vibrant and complex field shaped by many factors that buyers should keep an eye on. It's no secret that the city's real estate market has always been robust, and while 2023 is not expected to be a breakout year, it certainly won't be one to "crash and burn" either.
The primary concern among buyers and sellers alike is the state of the economy and the impact it has on employment rates and stability. Despite an unstable economy in 2022, employment numbers in Canada have remained strong, with nearly a million unfilled positions nationwide by the end of 2022. This has created a ripple effect in the real estate market, particularly affecting landlords and investors who must balance increasing costs with the need to attract and retain tenants.
Inventory continues to be a challenge in the Greater Toronto Area (GTA), with fewer homes listed for sale compared to previous years. This inventory problem creates a cycle where homeowners are hesitant to list their properties for sale without having secured a new home. However, the difficulty of finding a new home due to the low inventory makes this a challenging task. The first quarter of 2023 is expected to continue feeling unpredictable, with sellers likely adopting a "wait and see" approach, limiting the inventory further.
Government intervention in the housing market has been significant, albeit somewhat late. Changes to regulations and the introduction of new measures, such as the ban on foreign buyers and the vacant home tax, have also played a role in shaping the market. Some hope that increased mortgage amortization periods and rethinking the 2% stress test, especially for fixed-rate mortgages, will be steps taken to support first-time home buyers and those renewing their mortgages.
Regarding home prices and sales volume, 2023 is predicted to be a year of relative stability. Prices are expected to remain relatively flat, with Toronto continuing to perform better than the suburbs, and condos outperforming detached houses. The number of homes sold is anticipated to increase significantly above 2022 levels, but still lower than 2021 levels.
It's always good practice to get pre-approved for a mortgage, work with a knowledgeable realtor, and thoroughly research any property and neighbourhood you're considering. As always, ensure you're making a decision that aligns with your personal and financial goals. Stay informed and happy house hunting in Toronto!
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