Here's my outlook for 2023 - Chris Cook
Friday Jan 06th, 2023
Buyer Activity: Low
Interest Rates: Set to rise a bit more here in Q1 of 2023 but only 0.25%
I suspect interest rates will level off following this next announcement.
Why does this matter?
Buyers have been sidelined with uncertainty for the last year. With rapidly rising rates the consumer has been unsure of what the future looks like so they've paused. Once interest rates level out we will see a return of Buyer activity. Once that happens Sellers will also return to the market.
We're likely to see home prices here in Toronto stay level for the first half of the year. Buyers will still enjoy a period of less frenzy, allowing them to work with conditions and find the right solution to their housing needs. IF interest rates drop later in the year we're likely to see more of a surge of Buyers into the marketplace and a return to multiple offers and rising prices.There have been a couple new government regulations that may help ease housing prices. The foreign buyer ban (federal) and the vacant home tax (Toronto).
In my opinion this will have a greater impact on condos than freehold homes. Time will tell. As a Buyer, this is a good time to shop for a deal. I would be looking to do something in Q1 or early Q2. As a Seller, while inventory is low the homes that are selling are the best prepared and the best priced. Be wise in your approach if you need to sell.
Move UP buyers / sellers - This is likely the best time we've had in a long time to make this move. More expensive homes are selling for less and your current home may have only taken a small hit. We're having loads of conversations with people every week to see if opportunity exists for their situation.
As always, I have to say, there is no such thing as a Canadian or Ontario Housing Market. Prices and markets vary greatly even between neighborhoods. Please don't look at the big picture and think it applies to you. Get specific and connect with someone who knows and has your best interests in mind.