2023 Greater Toronto Area Housing Market Outlook

2023

RE/MAX experts lend their local market insights and expectations for the year ahead.

GREATER TORONTO AREA Housing Market Outlook

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Greater Toronto at a Glance

Notable trends, the factors behind them, and what's in store for 2023.

Balanced conditions are expected to continue in the Greater Toronto housing market into 2023. Move-up and move-over buyers have been driving demand in the region, in a trend that is expected to carry on in the next year. Single-detached homes remain the dominant housing type, followed by condo apartments. Key trends impacting the market in 2023 include interest rate increases and associated price adjustments, rising unemployment due to an economic slowdown, and new opportunities to engage in the market for buyers and sellers due to improved affordability. For buyers, this includes less competition, reduced prices and an increase in choices in the market. Meanwhile, sellers will also have a trade-up advantage, reduced competition of listings, a greater ability to re-locate to the suburbs.

2023 Market Conditions

balanced Market

2023 Average Price

$1,061,853.91

2022 Average Price

$1,203,916.00

Average sales are expected to decline 11.4% in 2023.

Regional Sales Trends

Rising interest rates are expected to be a dominant theme in 2023, resulting in a slower market for both buyers and sellers.

The luxury market in Toronto has slowed down and will likely continue to cool in 2023 due to economic pressures.

$1,500,000

$1,250,000

$1,000,000

$500,000

2021

2022

2023 (estimate)

average Price trends

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Canadian Housing Market Trends

Amid rising interest rates and a looming recession, RE/MAX is anticipating a modest decline of 3.3% in average residential sales price across the Canadian housing market in 2023. In sharp contrast to 2022, 60% of regions analyzed are expected to experience balanced market conditions in 2023 – a trend that’s already materializing due to current economic conditions.

Download the national data table

73% of Canadians believe home ownership is the best long-term investment they can make. This is up from 49% in 2021.

consumer confidence

45% of Canadians are concerned that further interst rate hikes will impact their ability to buy or sell a home in 2023.

interest rates

60% of Canadians surveyed said they own their home. 17% don't own, but expect to in the future.

Ownership in Canada

We surveyed Canadians. Here's what they said.

64% of Canadians would move for an affordable home; but 50% wouldn’t go farther than 100KM. (RE/MAX 2022 Housing Affordability Report)

Affordability

50% of Canadians said taxes are their biggest concern when buying a home in the next 5 years. (RE/MAX Unlocking the Future Report)

economy

57% of Canadians believe climate change / weather-related events will impact where they choose to live in the next 5 years. (RE/MAX Unlocking the Future Report)

environment

2022 Year in Review

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Consumer data was sourced by Leger through an online survey of 1,544 Canadians, completed between November 4-6, 2022, using Leger’s online panel. Leger is the largest Canadian-owned full-service market research firm. Leger's online panel has approximately 400,000 members nationally and has a retention rate of 90 per cent. A probability sample of the same size would yield a margin of error of +/- 2.5 per cent, 19 times out of 20.

About the RE/MAX 2023 Canadian Housing Market Outlook Report

Historical values are sourced from CREA or Local Board statistics. Estimates and forecasts are based on the opinion of independent RE/MAX broker/owners and affiliates. For More information visit REMAX.ca. Each office is independently owned and operated. Your use or reliance on the information above is at your own risk. The information is provided without any warranties of any kind, either express or implied. Neither RE/MAX nor any person associated with RE/MAX makes any warranty or representation with respect to the completeness, quality, or accuracy of the information. To the fullest extent provided by law, RE/MAX hereby disclaims all warranties of any kind, whether express or implied,statutory, or otherwise, including but not limited to any warranties of non-infringement and fitness for particular purpose. RE/MAX also disclaims any responsibility for the content, the materials, the accuracy of the information, and/or the quality of the information provided.

-11.8%

Source: Historical values are sourced from CREA or Local Board statistics. Estimates and forecasts are based on the opinion of independent RE/MAX broker/owners and affiliates.

(Estimate)

(Jan 1 - Oct 31)

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