Could The Housing Market Downturn Be Over?
Could the housing market downturn be over? Housing prices appear to be on the rise again in Canada’s bigger cities, such as Toronto and Vancouver. It’s also been reported that most real estate markets in the country saw a rebound recently when compared to March 2023. In this blog, we’ll discuss the Canadian real estate trends, the GTA real estate statistics and Burlington real estate statistics.
When it comes to the Canadian Real Estate Trends we can see the month-over-month gains were two per cent in Vancouver and five per cent in Toronto and Ottawa. Even though these appeared to help move inventory in most real estate markets, it wasn’t enough to keep up with Canada’s very high demand. It was reported that in Toronto there was a 6.5 per cent increase in inventory, however, the demand supply conditions were still very tight for the fifth month in a row.
Is The Worst Over?
In a recent article by Canadian Mortgage Trends, the President of the Toronto Regional Real Estate Board stated, “While still beset by a sharp loss of affordability in the last couple of years, buyers appear more confident to house hunt now that the Bank of Canada has paused its aggressive rate hike campaign (for good we believe).”
The article also stated that there has actually been a lot of strength in the market recently and now some people are asking if this downturn is possibly over. There may have been some hints that the “cyclical bottom” was over in early spring, we can explore that possibility a bit more as well.
The report stated that buyers are now “coming to terms” with these “higher borrowing costs” and seem to be taking advantage of the lower prices than they were the previous year. The challenge is that the result of this won’t be the homeownership demand but the ability to supply it. We can now take a closer look at the Greater Toronto Area (GTA) real estate market.
Greater Toronto Area Real Estate Statistics
It was recently reported that the entire GTA real estate market had a total of 7,531 residential property sales in April 2023. There was a decrease of 5.2 per cent compared to the same time last year. The benchmark price was reported to have been $1,153,269, this was a decrease of 7.8 per cent compared to the previous year.
There were a total of 11,364 new listings reported in April 2023 in the GTA real estate market. This was a decline of 38.3 per cent year-over-year. Active new listings had a total of 10,373, this was a decrease of 20.8 per cent. It’s interesting to look at the GTA real estate market, but it might it’s important to take a closer look at the Burlington real estate market for May 2023.
Burlington Real Estate Market for May 2023
The REALTORS® Association of Hamilton-Burlington (RAHB) reported a total of 429 new listings in May 2023. This was a decrease of 20.7 pre cent when compared to the same time last year. “The lack of new listings compared to last year in Burlington has pushed inventory levels to some of the lowest levels ever reported for the area for the month of May.”
When it came to the average price of a residential property in the Burlington area, RAHB reported it to be $1,127,635. This was a decrease of 7.9 per cent compared to the same time last year. It was also reported that the sales to new listings ratio remained at 73 per cent, while the supply in May dropped below one month.
“May saw the months of supply drop below one month, and the sales to new listings ratio remained at 73 percent. The tighter conditions have contributed to some price growth since the start of the year. The unadjusted benchmark price reached $1,086,400 in May, which is relatively stable compared to the previous month.”
Contact The VanDinther Team
Do you have any questions about the Burlington real estate market? The VanDinther Team has very experienced REALTORS® that are ready to help. Please don’t hesitate to reach out to the team either by phone or email. You can contact the team by phone at 905-330-2002 or by email at firstname.lastname@example.org.
If you’re been wondering what your home might be worth, give our “What’s My Home Worth” calculator a try. The VanDinther Team is ready and looking forward to helping you make the right moves!