HAPPY NEW YEAR!
Despite low inventories December saw 65 properties change hands. A year ago there were 95 transactions.
Almost half of the sales were for detached 2-storey homes which had and average selling price of $1,933,233.00. That is down about 3% from November 2022 and down 23% from a year ago, December 2021.
The outlook for home values for 2023 isn't that rosy either as a number of mortgage terms will come due in 2023 and many owners will have to refinance at approximately twice the carrying cost. These higher interest rates which will likely continue to climb during the first half of 2023 will weigh on affordability for those consumers seeking to get into the market or, move up as well as cause more mortgage defaults which may create some desperate sales. So the full brunt of the rate hikes has yet to be felt.
We will also miss out on the support from foreign buyers with the current legislation in effect.
The rental market remained about the same year over year with 54 lease transactions ranging in price from $2200/mth for a 1 bedroom 1 bathroom and one underground parking space condo apartment at Dundas and Bronte Road to $7000/mth for an executive detached 4 bedroom home near Dundas and Ford Drive. Lease prices are expensive
A silver lining for those planning to sell is the lack of competition, rising wages and an undersupply of new housing. We are also experiencing record immigration. That should help sustain sales prices.
