It’s hard to believe we are already deep into Spring. Harder to believe that this Canadian weather is showcasing all four seasons in just one week! From sandals to snow boots, these are the days of 2023. I’m Britt Huggins, a Toronto Real Estate agent with Royal LePage Signature Realty here to inform you about the state of the real estate market, the latest pricing averages and the updated Royal LePage market forecast! So let’s get to it.
In this second quarter of the year, we see a hive of activity as buyers strive to pick out and purchase their new homes. With the early start to the market season, increased buyer demand and limited inventory– housing prices continue to slowly rise, though less when compared to 2022 and 2021. RLP experts have forecasted that the price point of a Canadian home will rise by 4.5% at the end of Q4 when comparing statistics to the same time in 2022. This increase in housing prices appears to be here to stay, at least for the next 3 quarters as we forecast a small but steady incline in the national average home price point.
“Coming out of a correction, it is common to underestimate the speed at which the market will turn itself around. As market activity is rebounding quicker than anticipated, we are looking ahead with a sense of cautious optimism,” said Phil Soper, president and CEO of Royal LePage. “While we do not expect huge price gains this year, some sense of normalcy is returning to the market.”
Our Royal LePage House Price survey revealed that the average Canadian home’s price tag dropped by 9.2% to $778,300 when compared to the yearly average in the first quarter of 2023, but when comparing quarters, the average housing price actually increased by 2.8%. This is believed to be a by-product of the paused hike in Canadian interest rates. The Bank of Canada’s freeze in rates is the first one in a year.
It’s fair to say we are still seeing the effects of the Covid-19 pandemic on the housing market trends. While the lockdowns ceased market activity, the rise of work-from-home positions initiated a desire for bigger homes, better property, and resulted in a boom in sales volume and average price increases. The flurry of activity rises and falls, imbalanced the market which is why we saw a correction period. After the strong downturn, stagnant months, and slow correction, we are seeing the market shift and the housing economy begin to thrive once more.
Patient buyers and motivated sellers will see activity begin to bustle as the market improves. If you are ready to buy or sell and want to find out more about the current market, feel free to reach out to our team to find out how we can help!
