“With that said, relief seems to be on the horizon. Borrowing costs are expected to trend lower in 2024. Lower mortgage rates coupled with a relatively resilient economy should see a rebound in home sales this year.”
The Bank of Canada has indicated rate cuts may be on the horizon in 2024 if inflation comes down as projected. It has kept its benchmark rate at 5% since July last year.
Across Greater Toronto, December home sales increased in all categories year over year, except for condo apartments, which decreased by 1.4%. Semi-detached homes jumped 36.7% in sales, while sales of townhouses rose 19.8%. The average home price at the end of the year was $1,084,692, up 3.2% year over year.
New listings declined by 6.5% in December to 3,886 compared to the same month in 2022.
Jason Mercer, the board’s chief market analyst, said those who were able to participate in the market last year benefitted from more options, giving them a chance to negotiate lower prices.