The Royal LePage House Price Survey was recently released, and it suggests that the price of a Greater Toronto Area (GTA) home is going to exceed initial estimates this year. The housing market in Canada has been in turmoil for the past few years, but sanity is slowly returning, and many hibernating buyers are now emerging. This has forced experts to adjust their forecasts for GTA housing and expect higher prices than initially anticipated for the fourth quarter of 2023.
In the first quarter of this year, prices in the region were down year-over-year, with the aggregate price of a home falling 11.8% to $1,119,900 since Q1 2022. However, on a quarterly basis, aggregate prices increased by 4.8% since the previous quarter.
Median prices for single-family detached homes dropped by 11.9% year-over-year to $1,400,200, while GTA condo prices fell 7.4% to a median of $707,700 in the last quarter.
In Toronto proper, aggregate home prices decreased by 12.6% year-over-year to $1,144,300 in the first quarter of 2023, which is a 5.3% increase over the previous quarter. Median prices for Toronto single-family detached homes fell by 9.3% to $1,654,200 in Q1 2023, while condos declined by 10.3% to $705,400.
The GTA housing market saw robust activity at the beginning of the year, with many buyers reigniting their search for a home that they had previously put on hold. However, buyers are now facing a shortage of inventory, and the industry is not seeing as many deals close tens or hundreds of thousands of dollars over asking, as they did during the pandemic boom.
Royal LePage has revised its forecast for the aggregate price of a home in the GTA due to the unprecedented spike in market activity. They are now calling for a 7.5% year-over-year increase in the fourth quarter of 2023 alone.
While many first-time homebuyers continue to struggle with affordability challenges and difficulties qualifying for a substantial mortgage, the rental market's prices are staying up as so many young buyer hopefuls have been unable to get onto the property ladder.
In conclusion, the GTA housing market is showing signs of improvement, but buyers are facing challenges. With the unprecedented spike in market activity, the forecast for the aggregate price of a home in the GTA has been revised. It will be interesting to see how the market performs in the coming months.
What do you think about the GTA housing market? Do you think the forecast will hold true? Please share your thoughts in the comments below.