Housing supply, rising interest rates, affordability, inflation, the economy… homebuyers have a lot to think about these days, when it comes to things that may impact their purchasing decisions.

To help you understand all the factors to make a better, more informed homebuying decision, we sat down with a select group of Industry All-Stars for our 2023 Builders' Annual for their insights and advice.

The housing market is currently under the influence of a combination of elements, each with its particular ramifications and effects. One of the most pressing issues in the current housing landscape is the deficiency in supply, which has been severely exacerbated by the disparity between the immigration influx and housing completions.

Hundreds of thousands of newcomers

Canada welcomes hundreds of thousands of newcomers every year. However, the number of completed residences paled in comparison, with only 197,000 in 2022. This significant discrepancy indicates a considerable shortfall in the supply of housing, one that cannot go unnoticed.

Today’s housing market has been further strained by the increases in interest rates. Consequently, homeownership is increasingly unattainable for many Canadians.

The government has been sluggish in implementing comprehensive policies to handle this spiraling housing predicament. However, a plausible remedy could be offering subsidized mortgages as a pathway towards making housing more affordable.

For those wondering if they should sit on the sidelines to see if prices decline in 2024 – don’t wait. The expectation is that housing prices will likely be on the rise again, as soon as the first interest rate decrease comes into effect. There is a pent-up demand, and many of you may be shocked with what is about to happen.

Unprecedented deals

For individuals contemplating life in Toronto, it’s imperative to keep in mind that we are the fourth largest city in North America. With an ever-increasing immigration trend and an inability to meet housing demands, there’s nowhere for the prices to go but upward.

Currently, buyers are capitalizing on unprecedented deals offered by developers, such as lower deposits spread out over the duration of the construction, cash back to the purchasers and reduced mortgage rates.

The general consensus among most observers appears to be an expectation of reduced interest rates by 2024, and rates should continue to decline through 2025, 2026 and 2027. At the opposite end of the spectrum, the consensus is that over the same period of time, prices will continue to rise.

Without a doubt, the housing market scenario is complex. However, the opportunity still exists for those willing to take advantage of the opportunities that in a few months’ time will probably disappear. Will you regret missing that opportunity? Or will you be the proud owner of a new piece of real estate?

There will be no clear signals when the housing market hits bottom, but with my 33 years of experience in the real estate business, I think we are there.

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