Coming as good news to people looking to buy property in Ontario, a recently released 2023 Fall Housing Market Outlook Report by RE/MAX Canada predicts a cooling trend in the Ontario housing market.
One of the most significant contributors to the anticipated decline in home prices is the sky-high interest rates that have swept across Canada. In addition to Ontario, Hamilton, Ottawa, Windsor, North Bay, Kitchener-Waterloo, Durham Region, and Peterborough are all expected to witness a decrease in home prices this fall, ranging from two to five percent.
Christopher Alexander, President of RE/MAX Canada, suggests that the fall market could be an early indicator of what's to come in 2024. He anticipates a potentially active first quarter as buyers and sellers take advantage of the easing prices.
The report also highlights the varying nature of Ontario's real estate market, with some markets, such as Burlington, Lakelands West, York Region, the Greater Toronto Area (GTA), and Sudbury all projected to see price increases ranging from one to five percent. The GTA, in particular, continues to face both short- and long-term challenges, with interest rates being identified as a critical factor influencing the market.
This has added to Ontario becoming a red-hot housing market. Over half of Ontario regions, approximately 53 percent, are expected to remain sellers' markets this fall, where there may be a lack of supply to meet the surging demand. In contrast, seven percent are predicted to become buyer's markets, characterized by an excess of supply. The remaining 40 percent are anticipated to maintain a balanced market.
However, with sky-high interest rates and a complex mix of market conditions, homeowners, buyers, and sellers are advised to stay vigilant and consult with real estate professionals for the most accurate and up-to-date information on their local housing markets.
As noted by Alexander, while some regions are beginning to see relief from sky-high prices, government intervention remains crucial to achieving stability in the housing market in Canada.