MARKET STATISTICS | AUGUST 2023
Sunday Sep 24th, 2023
Average Prices of Detached Homes in August in Comparison to August of 2022:
- Toronto: +1.16% at $1,63M
- Vaughan: +7.83% at $1,82M
- Richmond Hill: +17.60% at $2,17M
- Mississauga: +3.31% at $1,58M
- Markham: +3.02% at $1,79M
- King City: +36.86% at $3,49M
- Newmarket: +13.76% at $1,40M
- Aurora: +9.92% at $1,67M
- Bradford: -0.92% at $1,18M
- Milton: +9.51% at $1,35M
- Stoufville: +0.91% at $1,56M
- Innisfil: -3.52% at $930,000
- Alliston: +1.49% at $875,000
- Burlington: +3.77% at $1,37M
- East Gwillimbury: +2.42% at $1,42M
- Barrie: +6.38% at $848,000
Higher borrowing costs, continued uncertainty about the economy, Bank of Canada decision making and the constrained supply of listings resulted in fewer home sales in August 2023 compared to August 2022. The average selling price remained virtually unchanged over the same period.
This comes at a time when Toronto housing inventory is hovering near record lows in contrast to the 1990s, meaning Ontario will need to ramp up new home construction, more than any other province, to restore affordability. The GTA’s sluggish real estate market saw the second worst August for new home sales in two decades. Sales were 63 per cent below the 10-year average as buyers and developers continue to wait on the sidelines amid uncertainty around the Bank of Canada’s rate hikes.
The market's softening could be a welcome sign for buyers, who watched housing costs soar through much of the COVID-19 pandemic only to be handed a quick succession of interest rate hikes as prices began to fall. With sales slowing and new listings returning to more normal levels, demand and supply are continuing to come into better balance.
It is worth to note that as housing prices across the city continue to be unaffordable for many would-be homebuyers, an increasing number of buyers are opting to purchase property with family or friends.
Demographic trends indicate an increase in housing demand now than 30 years ago as the population is expected to grow sharply and an increasing number of millennials are entering prime home-buying years. This being said, people still buy and sell real estate for reasons outside of interest rates. They are having children. They are changing jobs. Interest rates can impact their spend, but not their motivation to move.
Looking forward, we know there will be solid demand for housing – both ownership and rental – in the Greater Toronto Area and Greater Golden Horseshoe. Record immigration levels alone will assure this. In the short term, we will likely continue to see some volatility in terms of sales and home prices, as buyers and sellers wait for more certainty on the direction of borrowing costs and the overall economy.