Toronto Home Prices Are Expected To Drop In 2023 & Here's What You Can Expect

Despite this year's downward trend in the real estate market, first-time buyers hoping to invest in a Toronto home within the next decade remain out of luck because it's still expensive AF. At least, that's what the latest pricing forecast by Royal LePage suggests.

According to the real estate company, the average housing price across various units (condos, single-detached, detached homes etc.) in the Greater Toronto Area (GTA) is set to decrease by 2% in 2023, down to $1,056,734.

Buyers looking to invest in property that costs less than a million in 2023 will be stuck looking at condominiums, which are forecast to sell for a median of $701,243 after a 1% increase.

Single-family detached properties are set to decline 2.5%, but that'll only bring their median price down to $1,329,413, a price tag far from affordable for the average Ontarian who, according to Nationwide Visas, makes an average of $54,630 per year.

"The city of Toronto and the surrounding regions have seen some of the steepest price declines in the country since interest rates began climbing earlier this year. Still, home prices remain out of reach for many would-be buyers, putting a lot of extra pressure on the rental market, which has seen prices spike in recent months," said Karen Yolevski, COO of Royal LePage Real Estate Services Ltd., in a statement.

Worse yet, Yolevski suspects that once interest rates finally stabilize, consumers will flood back into the market, but the pickings will be slim.

"Lack of supply is still a huge challenge in southern Ontario. I expect buyers who have been waiting for prices to level off will encounter increased competition when they re-enter the buying cycle, specifically in the more affordable condo segment, although not at the levels seen in 2021 and early 2022," added Yolevski.

This article's cover image was used for illustrative purposes only.