December 2023 - Real Estate Market Update for Toronto

Welcome to my comprehensive December 2023 Real Estate Market Update for Toronto, Ontario?

?? Here, we dive deep into the latest trends, pricing analyses, and future predictions affecting the Toronto Real Estate landscape.

Whether you are a first-time homebuyer, a seasoned investor, or just curious about the market dynamics in this vibrant city, I’ve got you covered with detailed insights and expert commentary.?

?? What’s Inside:

? Latest Trends

? Pricing Analysis?

?Future Predictions affecting the Toronto Real Estate Landscape?

?? For Homebuyers, Investors & Curious Minds: This is your go-to guide for understanding Toronto’s housing landscape in December.

December 2023 Market Update

Today we are diving into what’s been happening in the Toronto Real Estate Market for December 2023.?

In the past year, we have seen some noticeable changes with the raising interest rates and some key economic shifts that have significantly cooled down our Market, particularly in the last quarter of 2023.?

Today, I’m going to guide you through the latest key trends and statistics and what they might mean for you as a home buyer or seller. I’m also going to give you a few insights and subtle shifts that we are already seeing in the beginning days of January 2024.

The Average Price

First, is the average price. We’re going to look at the average sale price of a home across all property types. We will include detached, semi-detached townhomes and condos.?

Altogether, the average sale price of a home in Toronto sits at $1,053,500 which is 0.79% lower compared to last year.. This is interesting considering the overall decreasing sales and hesitation that we saw in the market.

The Number of Homes Sold...

Now let’s take a close look at sales volume in the Toronto real estate market as of December 2023.

We saw 1,266 sales last month which represents an increase of 8.5% compared to December of 2022.

It’s clear that the interest rates didn’t have much impact on sales activity in our region.?

Months of Supply

Understanding the dynamics of the market is crucial and one key metric that helps us do this is the months of supply.

It may sound a bit technical but its actually a really straightforward way of looking at the data and we’ll break it down together.

Think of months of supply as a measure of the markets heartbeat. It tells how long it would take to sell all of the current listings at the present rate of sales assuming that no new listings are added. Its like looking at a store shelves and figuring out how long it would take for all these products to be bought if no new stuff arrives and this metric helps us understand the balance between supply and demand. It will indicate to ask whether we are in a buyer market, a sellers market or a balanced market.

In Toronto, over the second half of 2023, as sales started to slow down and inventory began to climb, we saw the month of supply increase as the year went on. We are currently sitting at 2.7 months of supply. Now this still puts us in what’s generally considered a sellers market.?

Inventory Composition

Whats interesting about our market is the composition of our inventory.

Over 30% of homes listed are in the high value range priced above $1.5 million. This premium segment shows the highest month of supply and the lowest sales to new listing ratio so simply put, these luxury homes are staying on the market longer compared to more moderately priced homes.

If you’re eyeing a high-end property, the market might offer more room for negotiation and a wider selection.

Conversely, if you’re planning to sell a higher value property, understanding these trends is crucial for setting the right price and marketing strategy.?

Days on Market

Next, let’s look at the average days on market. This tells how long homes are typically listed before they are sold. It’s a key indicator of the pace and the energy in the market.

Currently, the average days on market in Toronto stand at 33 days. This is a noticeable decrease from 39 days in November of 2023 and it represents an over 16% rise from the same period last year.

You may have noticed this slower pace in your neighbourhood where for sale signs might linger a bit longer and there’s more open houses and they’re happening over a span of multiple weeks.

Patience was key and being prepared for potentially longer selling process.?

For buyers, this signaled a less rushed market and you might find more time to weigh your options, visit more properties and make a decision without feeling any fast moving market that we are used to for a very long time.?

My Market Trend Insights

As we close out the December 2023 market update, I want to acknowledge that although these indicators may not paint the rosiest picture for the real estate market, I do believe that we are headed into a more robust 2024 market.? We’re already beginning to see some signs of rising buyer confidence. We see this through showing volume and some recent sold activity and when the interest rates come down, which they are expected to later this year, this growing optimism will only continue.?

In our next video, I’m going to dive deeper into these subtle, yet telling signs, giving you a clear perspective on whats happening, whats unfolding in the real estate landscape.?

If you have specific questions, or want personalized advice, please don’t hesitate to reach out.? Goodbye for now.?