• Home
  • Real Estate News - MarketWatch Update for Hamilton, Halton, Brantford, and Niagara from Rob Golfi

JANUARY 2024

What a Year 2023 Was!

Supply Levels Rise in 2023 as Demand for Higher-Priced Homes Fall  

As we bid farewell to 2023 and step into a new chapter, it’s crucial to reflect on the highs and lows that characterized the real estate market over the past year and peer into the crystal ball to foresee what 2024 might have in store for us.

Challenging Year for Ontario: Record-Low Sales
Levels Ontario witnessed a tumultuous year in its real estate sector, with 2023 marking record-low sales levels in some markets the lowest since 2001,The market grappled with a unique set of challenges, creating an environment where buyers and sellers had to navigate carefully.

Sellers Face Dilemma Amidst Increased Borrowing Costs
One notable trend was sellers hesitating to bring down their asking prices significantly, despite the burden of increased borrowing costs on buyers. This created a delicate balance, as sellers sought to maintain value while potential buyers faced financial constraints due to rising interest rates.

Inventory Dynamics: A Tale of Two Halves
Throughout 2023, inventory levels experienced a noteworthy trajectory. In the first half of the year, a restrained influx of new listings compared to sales prevented a rapid surge in inventory levels, maintaining relatively tight market conditions. However, the latter half of the year saw an uptick in new listings, leading to a fall in the sales-to-new-listings ratio. This shift fueled steeper inventory gains, pushing the months of supply above four months, which is buyer market territory.

Price Fluctuations Reflect Market Dynamics
Tighter conditions in the earlier part of the year propelled prices upwards, surpassing levels reported at the end of 2022. Nevertheless, as supply increased in the latter half of 2023, downward pressure on home prices ensued. The average benchmark price experienced a nearly nine percent decline compared to the previous year, erasing gains reported in 2022. However, it is noteworthy that prices still remain consistent with 2021 levels and significantly above pre-pandemic figures. Anticipated Trends for 2024: 

Stagnation and Mortgage Rate Impact
Looking ahead, we anticipate continued stagnation in number of sales until mortgage rates experience a significant reduction. The combination of elevated interest rates is currently dissuading many potential buyers from entering the market. To see a resurgence in activity, a noteworthy drop in mortgage rates is deemed necessary. As we venture into 2024, the real estate landscape holds the promise of change. Navigating these shifts with prudence and adaptability will be key for both buyers and sellers alike.

Questions about the market? Contact Us

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.