b'THE BUSINESS OF REAL ESTATEMARKETShe adds that development has slowed as a result of labour shortages and the increased WATCH cost of construction materials, creating pent-up demand. Many of these changes have not applied to what is happening in some specific Toronto TORONTOSIT HAS BEEN A DISRUPTIVE TWO YEARSsubmarkets, explains Heaps Estrins Megan REAL ESTATEfor the real estate market in Toronto as houseTill-Landry. Each neighbourhood has its own prices appreciated at a record pace, and interestecosystem. Although prices have softened MARKETrates experienced historical lows throughoutsomewhat, limited inventory in higher-end WILL HEAD2021 and early 2022. But with the rise inneighbourhoods is protecting the value.FOR CALMERinflation and lending rates in recent months,Interest rates havent been a deterrent for gone are the days of aggressive bidding warsupmarket purchasers, notes Pinelli. The high WATERSand multiple bids. Buyers are now exercisingend is solid. Interest rates are not having as IN 2023 ASmore caution in their purchasing decisions,much of an impact in terms of affordability, DEMANDwith some notable exceptions.although we are seeing rates play out much CONTINUESIn a recession, the higher cost of borrowingmore in the sub-$2 million market.typically reduces demand and leads to pricePricing and marketing strategies have had TO OUTSTRIPdeclines. However, thats not the case in allto adjust to reposition listings in the current SUPPLYregions, particularly Toronto neighbourhoodsmarket, says Till-Landry, as properties are with popular school districts, includingtaking slightly longer to sell. The average WORDS BYRosedale, Moore Park, Summerhill, South Hillnumber of days on the market is currently 17, DENISE DEVEAUand Forest Hill.according to the Toronto Real Estate Board, but Homes there have not bottomed outour homes are averaging 10 days, which speaks pricewise contrary to what we see in theto ongoing demand. This is a clear indicator headlines, says Christina Pinelli, real estatethat midtown Toronto properties continue to be agent with Heaps Estrin. We have simply notan excellent investment.experienced the decline seen in other TorontoExpectations are that pricing will stabilize regions, as an ongoing housing supply shortageover the coming months. The Royal LePage is keeping prices buoyant.The strength of the Toronto real estate market is in the supply and demand, she adds. Right WE HAVE SIMPLY NOT now, theres a lack of supply in the $4 million plus market especially. EXPERIENCED THE DECLINE In its 2023 Market SurveySEEN IN OTHER TORONTO Forecast, Royal LePage reports that by the end of 2023, homeREGIONS. AN ONGOING prices in the GTA are set to be twoHOUSING SUPPLY SHORTAGE per cent cheaper year-over-year, landing at $1,056,734. The medianIS KEEPING PRICES BUOYANT.price for detached homes is expected to drop by 2.5 per cent to $1,329,413,report predicts that the 2023 national while condo prices are set to increase by oneaggregate home price will end the year per cent to just over $700,000. 1.0% below Q4 2022. Although the year Toronto and the surrounding regions havewill start with double-digit declines, it will seen some of the steepest price declines in thebe followed by modest quarterly price growth country since interest rates began climbingin the second half of the year and end on an earlier in 2022, says Karen Yolevski, Royalupward trajectory.LePage Real Estate Services chief operatingOnce inflation and interest rates stabilize, officer. Still, home prices remain out of reachwell see stability, says Pinelli. Once buyers for many would-be buyers, putting a lot ofand sellers have a better understanding of the extra pressure on the rental market, which haslay of the land, those that may be holding back seen prices spike in recent months. will have the confidence to move forward.A Heaps Estrin Publication BEYOND 7Beyond_FEB23_Business_FINAL.indd 7 2023-01-24 5:44 PM'