Brought on by Bank of Canada rate hikes and rising Canadian mortgage rates, Ontario’s housing market has seen its average home price decreased by 20% over the past year to about $798,835 in January 2023. That’s the largest year-over-year drop of any Canadian province! What is worse is that it is not a one-time only increase. These averages for homes are a 2% drop compared to December 2022.
As home prices in Ontario continue to drop, they’re also decreasing across the country. Canada’s average home price sits at $612,204 for the month of January 2023 and is down 18% year-over-year. BC’s housing market is seeing average prices down 16% year-over-year.
The Greater Toronto Area (GTA) housing market, which accounted for 15% of all home sales in Canada for the month of January 2023, continued to see a steady decline in home prices. The GTA’s average home price for January 2023 was down 16% year-over-year. This is only slightly better than the province’s 20% annual drop.
Falling home prices is a trend seen in many of Ontario’s major housing markets over recent months. As Ontario’s housing market cools, sales activity has also tapered off. Home sales in Toronto are down by 45% year-over-year while Ottawa’s housing market is seeing a 35% decrease in sales year-over-year. Activity in Hamilton’s housing market has also slowed, with Hamilton’s sales activity down 14% year-over-year, a modest decrease. Mississauga home sales are down 49% year-over-year and home sales activity in Brampton is significantly down by 53% compared to last year.
Taking all these drops in the market under consideration the main question in most minds will be; “What Is My House Worth In 2023 As Is?”
Well, the answer may shock you. The average home price in Toronto’s housing market for January 2023 was $987,842 for the City of Toronto! Brampton had an average selling price of $1,002,018. Meanwhile, Mississauga home prices decreased 6% compared to last month to fall to $920,587.
What is worse is that with so many houses in the market and buyers putting off purchasing due to the increasing mortgage rates, listing your home for sale with an agent has never been scarier.
Long gone are the days when one could sell their home as is and walk away satisfied with the deal. Now, homeowners find themselves battling decreasing prices and in some cases fearing the renewal of their fixed mortgage rates as it would mean potentially not being able to afford their mortgage anymore.
Before you list with an agent that has promised you a “wow” high listing price, consider the current market and the amount of time you have before you need to have the home sold.
Housing Markets of Major Cities in Ontario
|City||Average Home Prices (January 2023)||Population(2021)||Population Density(2021)|
|Toronto||$987,842. -7.9% vs. 2022||2,794,356 2.3% vs. 2016||4,428/km2|
|Ottawa||$612,661. -9.5% vs. 2022||1,017,449. 8.9% vs. 2016||365/km2|
|Hamilton||$750,529. -23.1% vs. 2022||569,353. 6.0% vs. 2016||509/km2|
|Mississauga||$920,587. -20.2% vs. 2022||717,961. -0.5% vs. 2016||2,453/km2|
|Brampton||$1,002,018. -26.7% vs. 2022||656,480 10.6% vs. 2016||2,469/km2|
What Can You Do?
If you are looking to sell or have no option but to do so, now might be the time to look into alternative options.
Enter a Home Cash Buyer:
Honest Home Buyers is one option when looking into selling your house as is private. Rather than spending thousands on renovations, commissions for real estate agents, and wasting valuable time in a market that seems entirely discombobulated why not explore other possible solutions?
They will simplify the process and save you time and money. Although not the perfect solution for every situation it may just be the. You will immediately know the amount you are receiving as well as the closing date so you aren’t left in limbo, wondering when your house will sell. Direct sales are becoming increasingly popular, however, not all buyers are the same. Make sure you do your homework on both the local market and the buyer you are working with. A direct sale may not offer full price, but for some people, the amount saved on repairs, realtor commissions, and wasted time more than make up for the difference in price.
- Completely tailored to your needs closings (whether small or long you decide how fast we close)
- No agent commissions
- 100% Free no commitment offer
- No renovations or repairs needed
In times of need, it is good to know we have other options. Rather than feeling overwhelmed by increasing mortgage rates and feeling like you can’t sell why not inquire? You lose nothing in hearing an offer from a Cash Buyer. Long gone are the days when people would
battle in endless bidding wars for homes. Although your home may not be worth as much as it once was this doesn’t mean that you can’t get a fair offer for it. There are companies out there looking to buy homes for cash that will look at the market and give you a 100% offer.
Do you want to sell your house? Find out what we can do for you! Send us a message or give us a call today!