Recent changes in the market have prompted more homebuyers to consider whether or not 2023 will be the right year for purchasing a new home. While the housing inventory shortage and interest rates continue to remain a problem, a balance of many factors still points toward continuing stability for the foreseeable future. So, if you’re looking into the King City, ON, real estate scene this year, read on for a guide to everything you need to know before getting started!
King City real estate market highlights of 2022
In 2022, home price growth in Ontario slowed down to about 2% compared to 15% in 2021. Home prices in Canada have consistently risen over the past two decades. This slowing down of the market could be good news for homebuyers who have been waiting for prices to stabilize before making their moves.
In 2022, we also saw interest rates begin to rise in Ontario. Currently, interest rates sit at just over 4%, which is the highest they have been since 2008.
What is in store for King City real estate in 2023?
In addition, the number of transactions has significantly decreased, with a 36.5% drop from March 2022 to March 2023. The number of new listings has also reduced, and homes are spending much longer on the market (11 days in March 2022 compared to 27 days in March 2023).
While trends show some signs of cooling off, here are the top indicators that the market is expected to remain stable despite rising mortgage rates and prices tapering off in early 2023.
1. The first quarter is tracking well
2. Will home prices continue to decline in 2023?
Experts believe that home prices will remain stable, but you can expect to see fluctuations on the extreme end of the spectrum. How much lower will home prices go? Experts predict home prices will drop by as much as 13% in Ontario in 2023, along with a 6% drop nationwide.
3. King City Housing inventory in 2023
Thanks to lower mortgage rates, many homeowners are still reluctant to sell and plan to stay put for a while — as evidenced by the 44.3% drop in total new listings year-over-year. This hesitation has put a crunch on the housing supply and has directly resulted in price inflation.
4. Is 2023 a good time to buy property?
So, is 2023 a good time to buy? Yes! In fact, waiting until prices drop further to purchase a home isn't recommended, as there is no guarantee that will happen. This uncertainty, combined with low supply, means that it is generally not a good idea to put off a new home purchase for another year or two when you could be building equity during that time. In addition, buyers who have been waiting on the sidelines may now have an excellent opportunity to strengthen their position in negotiations. With homes spending much longer on the market, many sellers are more likely to make concessions or negotiate on the final price to achieve a faster sale.
Ultimately, deciding when to buy a home should be a decision based on personal factors, such as your specific financial situation, your need to relocate, and other criteria. Work with your real estate agent to determine whether or not now is the right time to move forward to this new milestone in life.
Ready to jump into King City real estate?
*Header photo courtesy of Shutterstock