GTA Housing Market Update: Increased Demand and Limited Supply Opportunity for First-Time Buyers in 2023
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The housing market in the Greater Toronto Area (GTA) has seen significant changes in 2023. Higher borrowing costs have led to home buyers to adjust their purchasing needs, resulting in a resurgence of market activity. The increased demand, coupled with a sluggish supply of new listings, is once again driving up sales prices. As a realtor, my advice to first-time buyers is to take advantage of the current market conditions and consider purchasing a home that fits your budget. In this blog post, I’ll provide an overview of the GTA’s housing market in May 2023 and offer insights for potential buyers.

 

GTA May 2023 Stats

 

The GTA housing market continued to tighten, with notable improvements since February 2023.

 

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Sales and Listings:

 

• - On a year-over-year basis, sales have increased by over 16% compared to May 2022.
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• - New listings were down in May 2023 by 28%, leading to increased competition among buyers.
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• - The limited supply relative to demand has resulted in bidding wars, particularly in the starter home segment, such as townhomes and semi-detached homes.
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Market Performance:

 

• - Average sale prices are still down by 1.2% compared to May 2022 but have increased by 8.4% compared to April 2023.
   

• - As of May 2023, the average sale price across the GTA was $1,196,101.

 

 

The Challenge of Housing Supply:
 

Meeting the demand for housing ownership remains a significant challenge in the GTA. Despite the government’s efforts

to increase the housing supply, the issue persists. Restoring housing affordability will require a substantial increase in

housing inventory. Given the significant increase in immigration, the initiatives being rolled out may not have a profound

impact on housing affordability in Ontario in the near future. The rise in rental prices may have also contributed to the

increase in home sales.

 

Advice to First-Time Buyers:
 

Considering the current market dynamics, I strongly recommend first-time buyers to enter the housing market in 2023. When inflation returns to the Bank of Canada’s targets, the potential decrease in interest rates may make housing more affordable but will also result in a dramatic increase in demand. The pent-up demand is likely to result in aggressive spikes in prices in the next 1 – 2 years, leading to aggressive bidding wars once again. Existing homeowners may experience less significant impacts since they sell at higher prices and buy at higher prices minimizing price fluctuation impacts on existing homeowners.

 

Opportunity for Waterfront Property Buyers:
 

If you are considering buying a waterfront property, this year presents an excellent opportunity. Cottage properties, on the other hand, have been slower to sell and are experiencing longer listing periods. The bounce back for cottage properties is yet to be seen.

 

Conclusion:
 

The GTA housing market in 2023 offers favourable conditions for first-time buyers to enter the market. Despite challenges related to housing supply, the increase in demand and limited listings opportunities still exist. As a realtor, I encourage you to take advantage of this market and consider purchasing a property that aligns with your budget and preferences.

 

If you have any questions or need further assistance, please don’t hesitate to reach out. It is my pleasure to help in any way I can.