As I detailed in my recap of 2022 in GTA Real Estate, last year was a rollercoaster for the market as a whole. From housing prices to inventory, and from inflation to interest rates, many factors affected both home buyers and sellers in the GTA.
Throw in legislation from both the federal and provincial governments, and there was a lot to weigh before buying or selling. Not that there wasn’t enough to consider without all of that!
But before moving on to what to expect in 2023, I want to say thank you.
Thank you to all of my clients. I deeply value you trusting me with the buying and/or selling of your homes. Choosing me to assist you in making such a big decision leaves me humbled! I wish you all the best throughout this upcoming year.
Now, What About 2023?
- Corrections
- Building up
- Community Power
- Immigration
1. Corrections
While it seems that we’ve already experienced a correction in terms of house prices, there might be more to come. Prices will remain higher than they were before the pandemic, but the February 2022 prices are likely the peak for the meantime.
Prices may have fallen a bit, but unless interest rates also fall, buyers won’t really save much money. Mortgage payments will largely remain the same or rise over the next few months, despite a lower price up front.
And if you’re not yet in the market and are renting, monthly prices are likely going to continue to rise. Since supply is still low and demand remains high, renters face increased prices for the near future.
2. Building up
Despite Doug Ford’s plans for the 413 highway and reallocating the beloved Greenbelt for housing, the best way to reduce sprawl is by building up. Intensification (taller and denser housing) is the preferred method of dealing with a growing population for most municipalities. This method is better for the environment, for affordability, and for social cohesion.
As a result of proposed intensification across the GTA, however, some existing home owners are fighting back. While some zoning restrictions have been eased, it still may not be easy to increase density in some areas.
3. Community Power
Just last spring, Toronto Community Housing had 637 units taken over by Parkdale’s Neighbourhood Land Trust and Community Circle Land Trust. This move was made to preserve affordable housing in the area, but it takes inventory out of the housing market. Watch for the possibility of other such moves, which allows communities to own and manage properties in their area. Whether it’s apartment complexes, laneway housing, or sometimes parking lots, Community ownership is a socialization concept to grow communities and redevelop them.
4. Immigration
In order to combat labour shortages, Canada is coping by admitting more immigrants. While immigration is key to a strong economy, there has to be enough housing for newcomers. Even though housing construction is at an all-time high, it is still not keeping up with demand. More skilled construction workers are needed.
As we saw in 2022 and are likely to see in 2023, there are a growing number of factors that will affect GTA real estate. But I’m here to help you navigate this ever-evolving landscape! Reach out to me as I would be happy to assist you!
Photo by 愚木混株 cdd20 on Unsplash
