I’ve been talking to a lot of homeowners and buyers lately, and everybody wants to know what is happening in the real estate market.
The Toronto Regional Real Estate Board (TRREB) recently released the highly-anticipated 2023 Market Outlook & 2022 Year Review Report, which includes the eagerly awaited reports such as the latest Ipsos consumer polling results on buying and selling intentions.
I will also include my studies, data analysis, and very useful market analytics tools for home buyers and sellers.
[To get Your Property Data Report/Dashboard for Your Property Type and Area like the one below, just Click Here]
In the next video/blog, I’ll take you to look at other important contents in the report, including a forecast of where the prices are heading in 2023 by TRREB’s Chief Market Analyst. So make sure you subscribe to this channel.
Ok let’s start today’s video!
2022 Market Stats Review
First let’s take a look at market stats in 2022.
The housing market started off strong in 2022 up until March. After March, as aggressive Bank of Canada interest rate hikes increased borrowing cost and worsened housing affordability, sales and average prices adjusted downward pretty significantly in spring and summer of 2022.
Later, starting from late summer, we see home prices starting leveling off for some areas and property types, suggesting the market adjustment may be coming to an end.
Detailed Analysis by Property Types and Areas
This is where it gets interesting… TRREB’s monthly Market Watch data shows that, different property types in different areas performed pretty differently in the second half of 2022.
To see the data more clearly, I’ve made a interactive dashboard using Tableau.
[Click Here to get your property report]
From the dashboard we can see, detached properties in popular areas such as Oakville and Brampton, we don’t see clear signs of price reached the bottom yet.
However, in other popular areas, price seems to have reached the bottom, even bounced back towards the end of 2022:
For example:
Markham, Vaughan (York Region)
Whitby (Durham Region)
Mississauga (Peel Region)
For Condos:
Again, we can see different areas performed pretty differently, with Downtown C01 Condos trending downwards at the end of 2022, and Midtown C10 Condos… we don’t have a clear sign of where its heading towards next.
To see how your property type and region performed during 2022, just [Click Here], to get your report Right Now.
What’s Next for Interest Rates
A steep increase in borrowing costs was certainly a major factor impacting the market in 2022.
But we’re not expecting the same type of increase in 2023.
The expectation is that interest rates will remain where they are… or even trend slightly downwards.
This graph shows historical BoC overnight rates, and predictions from major banks. We can see that most banks predict that the interest rate will stay where it was during the majority of 2023, and start to go down in the year 2024.
And this would be helpful from an affordability perspective, especially for those homebuyers who are sitting on the sidelines right now.A Survey from Ipsos shows that buyers want to make a purchase in 2023, but higher borrowing costs have impacted affordability. So a lot of these buyers may choose to purchase a different type of property, or homes in different parts of the GTA.
A detailed survey from Ipsos revealed buying intentions for home buyers and selling intentions for homeowners for different property types, which I will show you in the next video.
In the next video, TRREB’s Chief Market Analyst will forecast where the prices are heading in 2023.
So make sure you subscribe to this channel, hit the bell notification, and I’ll see you in the next video/blog!
