Is the economy recovering? Signs of prices leveling and, in some areas, increasing!
Market Insights - December's numbers are in and as outlined in the infographics below, although inventory is still at low levels, seasonally adjusted prices (Last three months) indicate that the market is leveling. Positive average price statistics posted in Burlington (+7.1% to $1,039,140), Oakville (+3.7% to $1,449,722) and Toronto (+0.6% to $1,126,006).
The number of sales transactions are down -48.2% compared to December 2021.
Although interest rate increases in the second half of 2022 swayed consumer confidence, Bank of Canada isn't expected to raise interest rates in January due to positive signs of economic recovery. Some economists are anticipating that the rates may even come down late 2023. Next Bank of Canada rate announcement scheduled for January 25, 2023.
"As we look forward into 2023, there will be two opposite forces impacting the housing market. On the one hand, we will continue to feel the impact of higher borrowing costs. On the other hand, record levels of immigration will support demand for ownership and rental housing, while we struggle to come to terms with a housing and infrastructure deficit in the Greater Golden Horseshoe." said TRREB CEO John DiMichele.
