As the Canadian housing market cools down in 2023, both buyers and sellers may find opportunities to make their moves. According to Erica Reddy, a Toronto real estate broker, the market will be kinder and gentler than in past years. This presents a great opportunity for buyers to take their time, assess their options, and make informed decisions.
While the COVID-19 pandemic caused a surge in activity in the housing market, the past year has seen a decline in home sales, which has also caused average home prices to dip. The Bank of Canada’s response to rising inflation by raising its key interest rate seven consecutive times since March 2022, from 0.25 percent to 4.25 percent, is also likely to impact the housing market. Economists are predicting a mild to moderate recession for 2023.
If you’re a buyer looking to enter the housing market in 2023, Reddy recommends prioritizing your budget and affordability. Determine your needs, wants, and priorities, such as location and school district, and use these factors to shape your purchase decision. She advises clients to take their time and not rush into a decision that they might regret later.
For those considering selling, timing is key. Reddy suggests that January and February, traditionally quieter months, are a great time to put your home on the market as there’s less supply and higher demand during these months. However, sellers should carefully consider their reasons for selling and what their next steps will be before committing to anything.
When it comes to the timeline for buying or selling a home, Reddy recommends planning for three to six months for working on the purchase and sale and an additional three months for closing.
In conclusion, while the Canadian housing market may be cooling down, 2023 still presents opportunities for both buyers and sellers. By carefully considering your options, needs, and priorities, you can make informed decisions that align with your financial goals and lifestyle.