"GTA Real Estate Market Outlook: Home Sales to Increase and Prices to Rise in 2023"
Experts weigh in on infrastructure and sustainability as population growth drives demand for housing."
The Greater Toronto Area (GTA) can expect an uptick in home sales in the second half of 2023, according to the Toronto Regional Real Estate Board's (TRREB) 2023 Market Outlook & 2022 Year in Review report. TRREB forecasts a gradual increase in demand for ownership housing, supported by lower fixed mortgage rates, a relatively resilient labor market, and record immigration.
Ipsos consumer polling results show that overall buying intentions are slightly up from last year, with 28% of respondents indicating they will consider purchasing a home in 2023.
However, the report warns that the housing market will be characterized by two halves in 2023. The first half may feel similar to the fall of 2022 due to higher borrowing costs and related economic uncertainty. The second half is expected to see a marked improvement in the housing market, which will be supported by lower fixed mortgage rates.
The TRREB report also highlights research from CANCEA on transportation infrastructure and insights from the Pembina Institute on electric vehicle trends in Canada and their impact on real estate. The report emphasizes the importance of building sustainable housing and having the necessary infrastructure to support these new developments.
The TRREB CEO, John DiMichele, stresses the need for a long-term vision with an eye on environmental sustainability, from raw materials to green designs, that will benefit future generations.
Population growth in the Greater Golden Horseshoe (GGH) is expected to climb 71% by 2051, driven by record immigration and job creation in a diversity of sectors. While this presents huge economic benefits, it also brings significant risks in terms of housing supply, transportation, and other infrastructure.
TRREB President Paul Baron urges policymakers to turn their policies into tangible results to ensure an adequate and diverse supply of housing that is supported by the appropriate infrastructure.
In summary, the GTA can expect a gradual increase in demand for housing in the second half of 2023, supported by lower fixed mortgage rates, a relatively resilient labor market, and record immigration. The report stresses the importance of building sustainable housing and having the necessary infrastructure to support new developments.
With population growth expected to climb significantly in the coming decades, policymakers must turn their policies into tangible results to ensure an adequate and diverse supply of housing supported by the appropriate infrastructure.
