April 2023: Spring is Around the Corner... I Promise

The real estate market stats for Toronto were just released noting that the average price for a home in April 2023 was down 7.8% compared to last year. In the past this would be a huge shock for Toronto but lately it’s come to be expected, a result of the market correction brought on by higher mortgage rates. However, we are trending in the right direction considering in January, February, and March prices had been down 16.4%, 17.9%, and 14.6% respectively.

General sentiment among those we’ve been talking to echoes this trend as well. People have been waiting for a year or so for the market to show some consistency before they can feel comfortable listing or making a purchase. We aren’t seeing the exuberance witnessed pre-pandemic or during 2021 but things are moving in the right direction, and we anticipate it won’t be long before bidding wars are the norm again.

For now, we are experiencing a relatively ‘balanced’ market. That’s not to say there isn’t still price uncertainty out there and unique situations, but for the most part properties are being priced fairly and we’re seeing them sell for about 5-10% over asking or less. Properties that require work are selling for less with conditions being accommodated, and terrific ‘move-in ready’ properties are going quickly after potentially receiving multiple offers.

The beginning of May started on the backend of two weeks of straight rain, seemingly reflecting the mood in Toronto real estate. But we’re starting to see the sun poke through and my feeling is that the Spring market will get into full swing with the arrival of the good weather. We are seeing lots of new listings come out and more buyers are getting interested as well. Only time will tell, but now is a great time to consider making moves if you were mulling over your options this winter.