With 2023 in our rearview mirror, we can say with confidence now that it was one of Toronto’s worst years yet for real estate. New data from the Toronto Regional Real Estate Board shows that home sales dropped 12.1 per cent in 2023 compared to 2022, with just 65,982 home sales reported. That’s the lowest year for home sales in the GTA since 2000 — even in the recession in 2008, the region hit hit 74,000 sales.
Toronto hit a record number of home sales in the real estate frenzy of 2021 with 121,712 sales, but the city has faced a steep decline since then.
The number of new listings in 2023 also declined despite an uptick in the spring and summer, with TRREB reporting that new listings were down 6.6 per cent year-over-year.
The average price for all home types year-to-date also declined to $1,126,604, down 5.4 per cent from 2022.
However, the numbers show that relief is in sight for 2024 — the average home price increased slightly by 3.2 per cent year-over-year, hitting $1,084,692 by the end of the year. Sales increased on a seasonally adjusted monthly basis compared to November, and also increased by 11.5 per cent year-over-year. The same is true for sales in every category and in both the 416 and 905 year-over-year: most showed double-digit increases, with the exception of condo apartments. There was particular growth for semi-detached homes in the region, with sales increasing 36.7 per cent year-over-year.
“Buyers who were active in the market benefitted from more choice throughout 2023. This allowed many of these buyers to negotiate lower selling prices, alleviating some of the impact of higher borrowing costs. Assuming borrowing costs trend lower this year, look for tighter market conditions to prompt renewed price growth in the months ahead,” said TRREB chief market analyst Jason Mercer.