The April 2023 Toronto real estate numbers are in so it’s time to take a deep dive into what they really mean, rather than reporting them without any context, as most do.
One question I received recently is why my stats vary slightly from the larger numbers reported widely. There is a good reason for that. I believe each district is different and performs differently in each market. For instance, combining Toronto with Peel or Durham doesn’t really make sense for my clients. My numbers focus on Toronto Central, so that’s what you’ll get from me.
I’m sure you’re familiar with my monthly reports where I dig into what the numbers mean and what’s happening in the market. My background is based in numbers (I was the head of finance for a big Toronto ad agency prior to real estate), so my approach to the market is very numbers-focused.
What you may not know (but hopefully you do) is that I help many clients buy and sell real estate on a daily basis. I am the Founder and Lead Broker of Toronto Realty Boutique and I specialize in listing homes and condos, representing buyers of all budgets, and I also do a lot of work in the Toronto pre-construction market.
So, if you’re thinking about buying or selling and want a Broker that can not only represent you better than anyone else, but who can also sort through the numbers and help you make the best move, don’t hesitate to contact me anytime.
Now let’s get into the April numbers.
The Overall Market: April 2023
When we look at the overall April Toronto Real Estate numbers in Toronto Central, we find some pretty incredible news. Each segment – Condos, Semi-Detached/Row Homes, and Detached Homes are all up in month-over-month stats.
This trend shows that the market is picking up, pricing is going up, more listings are coming on the market and more buyers are being active and making offers.
When we look at the year-over-year numbers, although we’re still down in each segment, the gap is shrinking. It’s likely to remain that way for at least the next month. But when we look at where we are today compared to 2021, we’re up, and by quite a bit.
This month, I want to do something different in my analysis – let’s take a look at each segment and the stats that aren’t typically reported, but let’s also look at where we are at year-to-date in 2023.
April 2023 Toronto Real Estate: Detached Homes
First, we should continue to examine some of the numbers that aren’t usually reported widely.
The year-over-year quantity sold is down 12%
Year over year new listings are down 17%
The year-over-year days on the market are up from 12 days to 15 days
So, we’re obviously still seeing the impact of the red-hot market we had last year around this time, but within this segment, that gap is getting smaller.
Let’s look at the month-over-month trend for Detached Homes in central Toronto.
January 2023 Average Price: $1,879,728.00
April 2023 Average Price: $2,303,630.00
This shows an increase in Detached Home prices by 22.5% or $423,902.00 in just four months. That’s an average increase of over $100k each month since the start of the year.
What are the takeaways here? Reality says that yes, the year-over-year numbers are down. But when we look at the trends right now in 2023, it’s very positive. All indicators are showing that the market is on a steady, upward climb.
It will be very interesting to see what happens within this segment over the next couple of months. Will homeowners want to enjoy the upcoming summer and not think about selling, keeping the supply incredibly low? If that happens, we’re going to see some big numbers for both pricing and days on the market.
But if homeowners see that now is an incredible time to sell, because of that lack of supply, making their homes a hot newcomer to the listings block, they’ll get ahead of the curve and really see a positive outcome from that decision.
Advice for Sellers: now is the time! Get your home on the market before the start of the school break. You’ll position yourself in a hot market simply due to the lack of listings out there. Get a good pricing and marketing strategy in place and you’ll be pleased with the end result.
Advice for Buyers: Pricing is likely to continue to go up at a steady pace as we’ve seen so far this year. If you’re still waiting for the bottom, I’m sorry to say but that has passed. Don’t wait yourself out of the market – get in now.
April 2023 Toronto Real Estate: Semi-Detached and Row Homes
Let’s take a look at some of the numbers that aren’t usually reported widely for this segment.
The year-over-year quantity sold is down 33.5%
Year over year new listings is down 36%
The year-over-year days on the market are up from 15 days to 11 days
As expected, the numbers year over year are down and will continue that way for the next little while. But there are a few bright spots here that should be noted. First, the days on the market are down, indicating that buyers are becoming increasingly active within this segment.
As I always say, the semi-detached and row home market is the first to react to any positive or negative market news. Be it, interest rates, unemployment numbers, or general market sentiment.
A perfect example of this is demonstrated when comparing March 2023 to April 2023 stats. We had news on April 12th of a second rate hold, unemployment numbers were strong and the general view of the Canadian economy was that things were getting better. Buyers took all of this positive news and acted on it right away.
In March vs April, the quantity sold and the number of new listings were nearly identical. But the average price soared to $1,543,683.00, which is an increase month over month of $144,049.00 or up by 10.3%.
Let’s see where things are at from a year-to-date perspective.
January 2023 Average Price: $1,362,690.00
April 2023 Average Price: $1,543,683.00
Something to also note here is that the average number of days on the market started at 24 in January and is now sitting at just 11.
The pricing in this segment has increased by 13.3% or $180,993.00 in just four months.
Based on what I’m seeing with these numbers, this segment will be the first to show a year-over-year increase – be it in May, or this summer, the activity within this segment and how quickly the number of days on the market is dropping, shows that things are heating up very quickly here.
But be warned, if we happen to see another interest rate hike by even .25%, things may change just as quickly in the opposite direction.
Advice for Sellers: with pricing trending up and inventory still sitting incredibly low, it’s the perfect storm for you to list. Buyers are out there looking, and many are not finding what they want. Beat the rush and get into the market when the buyers are active. You won’t regret it, especially if you’re waiting to sell before buying.
Advice for Buyers: lock in your pre-approval now. Fixed rates are trending down and with the next Bank of Canada meeting set for June 7th, you’ll want to get something in hand as you look. Even if you don’t think you’re going to pull the trigger, it’s good to have that locked in, in case you find a home you love.
Toronto Condos
Let’s examine some of the numbers that aren’t usually reported widely.
The year-over-year quantity sold is down 5%
Year over year new listings are down 21.3%
The year-over-year days on the market are up from 12 days to 17 days
What we’re seeing within the condo segment right now is very interesting. When we look at the month-over-month number of new listings and quantity sold, we’re nearly flat from March to April. Meanwhile, pricing has gone up 5.1% month-over-month or $41,507.00.
This isn’t a significant change, but I always say that the condo market is one of the most stable for investors in Toronto real estate, and time and time again, the numbers prove this is correct.
The condo market in Toronto isn’t going anywhere so when you look at simple math and the basics of supply and demand, there is no better place to put your investment dollars.
With the huge immigration numbers coming into Toronto, the number of international students coming into the city, young professionals buying their first homes in the city which are likely condos, and downsizers returning to condo living, the demand far outpaces the supply. And will for many years to come.
Let’s see where things are at year to date within the Condo segment.
January 2023 Average Price: $804,972.00
April 2023 Average Price: $857,930.00
Something to also note here with the April 2023 Toronto Real Estate numbers, is that the average number of days on the market started at 31 in January and is now sitting at 17.
The pricing in this segment has increased by 6.6% or $52,958.00 in just four months. Now this isn’t a huge jump like we’re used to seeing in the other segments but that means one thing – stability. And stability is what you want to see when investing in real estate.
Advice for Sellers: If you’re looking to sell your condo my best piece of advice for you is don’t. Find a way to keep your condo, take out some equity, and make your next move. Building your portfolio, regardless of how young or old you are is the first step in building wealth. Not many agents will tell you not to sell but here I am. Don’t if you don’t have to.
Advice for Buyers: the condo segment is going to start to see some bigger growth numbers for the remainder of the year so if you’re playing the waiting game to see what happens next month or the month after, don’t. You’ll need to make some moves now in order to avoid disappointment later on.
We’ve all seen the headlines and some of them are accurate – sellers are back in the driver’s seat. Pricing is up across the board for the fourth month in a row, supply continues to be at historic lows and demand remains consistent.
These factors shouldn’t deter buyers. They should see these facts and be motivated to act and get into the market and make their next move. You don’t get to be a seller before you become a buyer.
If you’re thinking about buying, selling, or investing and want to discuss strategies, pricing, timing, or anything else, simply complete my form on this page so I can get in touch right away. I’d be happy to answer any questions about the April 2023 Toronto real estate numbers you have or about the Toronto market in general.
~Romey Halabi
Founder & Lead Broker, Toronto Realty Boutique
416-999-1240
TRB Education Hub
Get the real estate resources you need to succeed. Visit our education hub for market insights, guides, podcasts and more.
