(Toronto) The average price of residential properties in Toronto is expected to rise slightly as 2023 progresses, but it won’t catch up to its peak from last year, so buyers are returning to the market and making long-awaited purchases again, a the Toronto Real Estate Board said Friday.
In its annual outlook released on Friday, the organization said it expects the average selling price this year to reach $1,140,000, up from $1,038,668 in January.
The average expected sale price represents a 4% decline from the average for 2022, which was $1,189,912, but is still above pre-pandemic levels. The predicted price is 39% higher than the 2019 average of $819,153.
“The year 2023 will be divided into two halves. The first half will look like the fall of 2022 due to the lingering effects of rising borrowing costs and associated economic uncertainty,” said Jason Mercer, chief market analyst for the real estate board, in a statement.
“The second half of 2023 is expected to be characterized by increased demand for owned accommodation, supported by lower fixed mortgage rates, a relatively resilient labor market and record immigration. »
The real estate board’s forecast is partly based on Ipsos polls suggesting more buyers are likely to enter the market in the coming months, but also takes into account potential buyers, who have been watching rates nervously. interest and mortgage rates rise for much of the last year.