Housing prices in the GTA will hold steady, despite an expected dip inThe real estate firm released its forecasts for the end of 2023, as well as price trends for the second quarter of this year, Thursday.
“What we anticipate happening is that even with now two successive interest rate increases in these early summer months, the prices are not going to dramatically change,” said Karen Yolevski, chief operating officer with Royal LePage Real Estate Services Ltd. “A lot of the increases we’ve seen have taken place already this year and what we see in this back half of this year will likely be some subdued supply, some subdued transactions but not a major impact on the prices.”
The report expects GTA aggregate home prices, the combination of the median price of detached, semis and condos, in the region to rise 11 per cent in the final quarter of 2023, compared to the same time last year, from about $1.069 to $1,186 million, as higher rates spook some sellers and cause them to pull back, putting pressure on already constrained supply.Prices did fall somewhat in the latter part of 2022, but then started to rise again after the interest rate pause, Yolevski said.
Instead, there was “a decreased number of listings. We saw 20-year lows in listings” as people stayed on the sidelines due to higher rates, leading to more competition for the few homes for sale.