Summary of sales & average price by region: bit.ly/JanuaryMarketUpdate2023

The start of the year has seen a stable housing market, with the number of January sales and overall average selling price being similar with the December 2022.

Despite this, both sales and prices were down compared to the previous year, reflecting the impact of higher borrowing costs on affordability. However, there is good news for homebuyers as the Bank of Canada has announced that interest rate hikes are likely on hold and other factors such as population growth and a tight labor market will continue to support housing demand.

The average selling price for January 2023 was $1,038,668, which is slightly lower than December 2022 and 16.4% lower than January 2022. The declining home prices over the past year can be attributed to rising borrowing costs, but the trend of lower negotiated medium-term mortgage rates is expected to continue, providing relief to affordability in 2023.

The government is also taking action to enhance housing affordability over the long term, with initiatives to increase housing supply in both the ownership and rental markets. The recent support from Toronto City Council for the Mayor's 2023 Housing Action Plan is a positive step towards addressing these issues.

That's all for now on the housing market updates. Stay tuned for more news on real estate and finance.