February 21, 2023
It's hard to believe that we are in the middle of February right now with the balmy weather that we have been experiencing. I know we have not seen the end of Winter (it always snows in April) but the spring like weather gives me hope for warmer days ahead.
Last week I attended the Toronto Regional Real Estate Boards (TRREB) 2023 Market Outlook Housing conference. This year is being labelled as the year of two halves. The first half of the year homes sales are predicted to be on a relatively flat trajectory because of the lingering effects of higher borrowing costs and economic uncertainty. However, the 2nd half of 2023 we are expecting so see a downward trend in the interest rates and some economic certainty related to our resilient Labour market.
Listing inventory will continue to be a persistent problem in 2023 and because of the low inventory we are already starting to see some bidding wars again in some of the lower price ranges with multiple offers on some properties. If predictions are correct and inventory increases in the latter half of the year, then buyers will have more choice, and this will lead to more balanced market conditions.
There were a lot of home buyers and sellers that sat on the fence last year because of the volatility of the market and the increase in interest rates. This year, I predict that many of the home sellers that have been waiting for the market to settle will be more comfortable making the decision to sell their homes in 2023 in a more balanced market. Buyers will have more options as inventory increases and interest rates start to decline. Moving into more balanced market conditions is good news for both Buyers and Sellers.
If you are thinking of Selling this year then don't hesitate to reach out for a Market Analysis of your home. If predictions are correct, then the first half of the year is the best time to Sell. I always strongly recommend listing in February/March because historically this has always been the best time to list - when inventory is low and the market has not started to pick up yet. Less competition means higher demand for homes!
As inventory increases in the 2nd half of 2023, Buyers will be moving off of the sidelines taking advantage of more choices and pricing should remain relatively stable. If interest rates start to drop, as expected then we may see a flurry of buying activity from Buyers that have been waiting for the perfect time to buy.
Whether you are thinking of buyer or selling. Don't hesitate to contact us if you need some advise, we are always happy to help!