The average selling price in February 2023 was $1,095,617, a 17.9% decrease from February 2022. Some of this decline can be attributed to the fact that the share of sales less than $1,000,000 was 57% in February 2023.
On a monthly basis, however, the average price increased in comparison to January 2023, following the regular seasonal trend.
Pay attention, first-time home buyers; now may be a good time to buy and build equity for the future!
Regarding interest rates, the Bank of Canada (BoC) may split from the Federal Reserve and not raise rates this Wednesday, March 8th, citing the Canadian economy's sensitivity to interest rates and the possibility that current rates are sufficient to lower inflation. However, this would not be the first time, as the BoC did in 2008 where there was a 75-point difference between the two countries.
We recommend riding the variable rate at current rates and forecasting lower rates by the end of 2024, as there are many signs of a slowing economy on the whole.
The Greater Toronto Area has already seen significant declines, and because there is still a shortage of inventory and rising rents, the housing demand will rise this year despite the high interest rate environment.