Is 2023 a good time to buy a house in Ontario? Thankfully, the market is stabilizing after unprecedented changes during the pandemic. Over the last few years, we’ve seen everything from bidding wars, fast sales, condition-free offers, and slower times with homes value volatility. We are happy to see that the market is picking up again, and this spring is expected to be a great one!

There is no perfect time to invest in a home that will be right for everyone. Buying a home in 2023 should be based on more than market conditions. We always recommend basing your choice on your lifestyle, wants, and needs. Are you financially ready to buy? Have you outgrown your existing house, or is it time to downsize? Or maybe you need to relocate for work? Ultimately, these factors play a much more significant role in your buying decision than the market’s state.

Ontario’s Real Estate Market  

The pandemic caused an unprecedented shift in the real estate market. Demand was high! As people were forced to stay inside, we all began to realize the importance of a comfortable home. Many people looked around and decided it was time for an upgrade. With remote work a new possibility, others left bigger cities for quieter spaces.

The last few years brought fast sales, bidding wars and condition-free offers. Buyers needed to get in quickly because sales happened fast. For some, that meant going in without home inspections and maxing out their budgets to secure the type of house they wanted.

At the beginning of the pandemic (April 2020), Ontario’s average residential sale price was under $600,000. By September 2021, we saw that increase to over $880,000.

Things have been starting to cool since the spring of 2022. Lessening demand, effects of inflation and increasing interest rates bring a calmer market.

Real Estate Forecasts for 2023

The market is stabilizing. Experts predict the cooling and rebalancing of real estate will continue throughout 2023.  What does this mean for those looking to buy in 2023?

There are always pros and cons to every market state. Ultimately, deciding when to buy and sell would be best based on your life, needs and financial condition.

Pros of Buying a Home in 2023

1. Less pressure!

The few years were intense for buyers. Things moved very quickly. There was a lot of inventory but also a lot of competition. If you didn’t get in fast and make your offer, the house could be sold out from under you. There was minimal opportunity to take your time and weigh your options.

As the market stabilizes, the pressure eases. With less competition, you can slow down and take your time with a purchase. You have time to choose the right home without pressure to jump on the first house you see!

2. More stable prices.

The ups and downs of the last few years have calmed. A state of constant flux is a stressful time to buy! Some rushed in because they saw prices continuing to climb, and they didn’t want to miss out. But what goes up must come down. As home prices balance out, experts expect them to remain reasonably stable for the next little bit.  

3. Room for negotiation.

There was little room for negotiating with sellers over the last few years. You jumped on a property quickly, often waiving restrictions like inspections and getting into bidding wars to win the home. Now that things have calmed, buyers have more room to negotiate prices or ask for repairs before the deal closes. Being able to negotiate with a seller helps ensure you get the best deal possible.

4. Expected inventory increase come spring.

There has been very low inventory over the last three months. But, as spring market approaches, we usually see more homes come to market. The 2023 spring market could be the best time we’ve seen to buy a house in the last few years!

Cons of Buying a Home in 2023

1. Current low inventory.

Fewer properties on the market means finding your home may take longer. To combat this, create a home buyers checklist defining your wants and needs and pack your patience. It’s always best to take your time with a significant decision like buying a home. Taking the time to define your priorities will help you pick the perfect fit when it pops up. (And a well-connected realtor on the hunt for your dream home is key!)

2. Higher interest rates.

It all comes down to knowing what you can afford when purchasing real estate. Hopefully, the interest rate hikes are behind us! It’s always best to get a pre-approval before you start looking. Working with accurate numbers helps ensure you don’t overspend. (And don’t fall in love with a home that’s out of your price range).

The real estate market in 2023 seems so far to be calm and stable. Considering the last few years of high-pressure sales, seeing things slowing down is a nice break. If spring inventory increases as expected, it may be one of the best times to buy a home that we’ve seen in a while. There are pros and cons to every market state. If you’re ready to buy or sell your home in 2023, we’re here to help!