©Copyright by top real estate agent in Toronto/GTA, senior broker, Daisy Huang, Jan 2024.

Over the past year, various external factors have created a challenging environment for the real estate market in Greater Toronto Area. As participants or observers, individuals’ attitudes, cognition, and financial situations have led to diverse perceptions, thoughts, and actions. Ultimately, the existence and dynamics of this market, and indeed the entire world, are just reflections in each person’s mind. It varies depending on individual positions and perceptions, hence the saying “nothing outside the mind is real or true,” implying there’s no absolute right or wrong. The crucial aspect here is to objectively document the current market conditions, allowing for rational and objective judgments about the future based on history, reality, and even popular psychology and philosophy.

At this time every year, the goal of the “Daisy Huang Real Estate List” is to help you objectively review the past, understand the present, and grasp the future.

In 2023, the keyword for the Canadian and Greater Toronto real estate markets was “high interest rates”, leading to a significant decrease in both investment and purchasing power for those in need. The overall GTA housing prices saw an average annual decrease of 5.3%.

Looking at the regions, Markham experienced the smallest decline, with prices dropping by 1.7% year-on-year, followed by Toronto Central and Richmond Hill, which saw decreases of 2.2% and 2.5% respectively.

In 2023, the areas with the highest average prices remained consistent with previous years in the Greater Toronto Area. The top three areas in terms of average prices were King City with an average price of $2.06 million, Oakville with $1.54 million, and Richmond Hill with $1.43 million.

If we analyze the average price and the change in prices within a quadrant graph, we can observe that in an environment where the overall market is declining, the further out from the core of the Greater Toronto Area, the larger the decline in prices. Conversely, the more established and higher-priced towns closer to the GTA experience smaller declines, or maintain their values, suggesting they are more resilient. This phenomenon is also reflected in the earlier heatmaps, where lighter-colored blocks indicate larger declines, while darker-colored blocks indicate smaller declines.

Daisy Huang wants to point out that this is the opposite of what happened during the period of market surge amid the pandemic, where areas with lower average prices experienced larger price increases.

In 2023, the average price of detached houses in the Greater Toronto Area was $1.46 million, with an annual decline of 5.3%. The heatmap shows that the darker the color, the smaller the decline in prices, while lighter colors indicate larger declines. It can be observed that the outlying areas of the GTA experienced more significant declines in detached house prices in 2023 compared to the core GTA areas. In terms of prices, Toronto Central, King City, and Oakville topped the list for detached house prices. The average transaction prices were $2.56 million, $2.26 million, and $2.02 million respectively.

In the 2023 quadrant graph for detached houses, the horizontal axis represents the average transaction price, the vertical axis represents the annual change in price, and the size of the circles represents the transaction volume. It’s quite evident from the graph that the lower-priced towns experienced larger price drops for detached houses, while the higher-priced towns tended to retain their value better.

In 2023, Richmond Hill, Markham, and Vaughan experienced the smallest declines in detached house prices, with Richmond Hill remaining almost unchanged, experiencing only a marginal decrease of 0.1%. Markham and Vaughan both saw declines of 3.3%. The largest decrease in detached house prices in the GTA occurred in the northeastern town of Brock, with an average annual decline of 16%. In terms of transaction volume, Brampton, where the majority of residents are of Indian descent, had the highest transaction volume for detached houses in 2023, with an average price of $1.23 million and an annual decrease of 11%.

In 2023, the average price of townhouses and semi-detached houses in the GTA was $1.08 million, experiencing a yearly decline of 5.1%. Among them, Toronto Central, King City, and Markham secured the top three average prices, standing at $1.59 million, $1.38 million, and $1.28 million, respectively. The distribution also generally showed larger price drops in the suburbs and smaller declines in the core areas. It’s worth noting that the average prices of townhouses and semi-detached houses in King City increased against the market trend, rising by 8% annually.

Looking at the quadrant chart for townhouses and semi-detached houses, King City stands out as a solitary point, leading the way. On the chart, the horizontal axis represents the average transaction price, the vertical axis represents the yearly change rate, and the size of the circles represents the transaction volume. It can be observed that due to the small transaction volume of townhouses and semi-detached houses in King City, with only 24 transactions annually, the price fluctuations are quite random.

For the other towns, there was a general trend where lower-priced properties experience larger declines, while higher-priced properties had smaller declines. In Brampton, townhouses and semis had the highest transaction volume in the GTA, with an average price of $930,000 and a yearly decline of 10%.

In 2023, the average price of condo apartments in Greater Toronto Area was $730,000, experiencing a yearly decline of 4.9%. Our analysis of GTA condo apartments primarily focuses on Toronto City and its surrounding areas including Markham, Richmond Hill, Vaughan, Mississauga, and Oakville. In 2023, the most expensive condos were found in the downtown Toronto C12 Bridle Path area, with an average price ranking first at $1.6 million, and an astonishing 25% yearly increase. The C09 Rosedale area in downtown ranked second in GTA with an average condo price of $1.45 million, showing an 18% yearly increase. This achievement amidst the general decline across various property types in the 2023 Greater Toronto real estate market was indeed remarkable.

On the Condo quadrant chart, the C12 and C09 areas stand out like two shining stars in a distant galaxy, proudly rising despite their low transaction volumes. These areas gleam brightly, distinct and exceptional amidst the crowd. In 2023, the highest-priced Condo transaction in GTA occurred in the Bridle Path, with a price exceeding $7 million. The wealthy inhabit their own world with its unique mindset, where their existence is deemed reasonable. This has implications for the common majority.

Alright, the factual data has been presented one by one. Rate cuts are expected, tightening of overseas education, capital markets in developed countries continue to rise, development costs only increase, and there is a large backlog of demand. Which way is the trend ahead is left for everyone to judge.

As we bid farewell to the old and welcome the new year, Daisyrealty.ca wishes you success in all your endeavors and abundance in wealth. Until next time.

Originally written and all copyright© reserved by Daisy Huang www.daisyrealty.ca, top real estate agent in Toronto and GTA, senior broker. High Value. Delivered.

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