TRREB sees GTA sales rally in second half
February 20, 2023
Home sales and prices in the Greater Toronto Area (GTA) are expected to start rising in the second half of 2023, according to the city’s real estate board, with competition among buyers also expected to heat up.
In its annual housing market forecast, the Toronto Regional Real Estate Board (TRREB) said the average composite selling price would reach $1.14 million—based on expected tighter market conditions in the last six months of 2023 and recent indications that buyers are ready to enter the market again.
This prediction is 4 per cent lower than the average selling price in 2022, TRREB said. But it marks an increase over the current average level of just under $1.04 million, reported in January 2023.
The first half of the year is likely to remain quiet, TRREB’s chief market analyst Jason Mercer said, as interest rate hikes continue to take their toll on the housing market.
TRREB also noted that listing intentions for townhomes in 2023 have increased compared to the previous year, according to Ipsos, while intentions for condos and semi-detached homes remained largely in line with 2022.
Canada’s immigration targets for the coming years are also likely to spur greater demand in the housing market, Mercer added, with Toronto and its surrounding areas slated to welcome a significant number of those newcomers.
“The second half of 2023 should be characterized by an increase in demand for ownership housing, supported by lower fixed mortgage rates, a relatively resilient labour market, and record immigration,” he said.
Overall, TRREB is predicting 70,000 properties to change hands in the 2023 market, driven by expected strong performance in the second half of the year.