Home prices have decreased over the past year due to the Bank of Canada's interest rate hikes. Many homebuyers have chosen to purchase lower-priced homes in order to offset higher borrowing costs. The proportion of home purchases under one million dollars has increased compared to last year.

Now, according to the TRREB, there were 4,783 sales through TRREB's MLS® System in February 2023, this is a 47% drop compared to last year at the same time. The number of new listings entered into the system is also decreased by 40.9% to 8,367. The number of new listings continued to drop year-over-year in the GTA. However a recent ipsos poll suggests that buying intentions have increased for 2023, leading to increased demand and competition between buyers due to the limited supply of listings. This will eventually lead to renewed price growth in many segments of the market, especially those catering to first-time home buyers who are facing increased rental costs.The average selling price for February 2023 was $1,095,617, down 17.9% compared to February 2022. This decrease is partially due to the fact that the proportion of sales below $1,000,000 was 57% in February 2023 compared to 38% a year earlier. However, the average price followed the seasonal trend, increasing relative to January 2023. The MLS® Home Price Index (HPI) Composite Benchmark was down year-over-year by a similar annual rate of 17.7%, but was also up on a monthly basis.