Where to Buy Real Estate in Canada 2023: Toronto
Many Toronto buyers held off on making a home purchase in 2022. As demand picks up again, these are the top T.O. neighbourhoods to watch for.
Many Toronto buyers held off on making a home purchase in 2022. As demand picks up again, these are the top T.O. neighbourhoods to watch for.
Toronto is one of Canada’s most globally recognized cities. The metropolitan area of Toronto is home to 6.2 million people, while the city of Toronto has a population of 2.8 million, just over 7% of Canada’s total population.
In the table below, you’ll find the top Toronto neighbourhoods in which to buy real estate in 2023. To view all the data, slide the columns right or left using your fingers or mouse. You can also download the data to your device in Excel, CSV and PDF formats.
Source: Zoocasa
Toronto home prices peaked in April 2022, with the city’s average home price reaching a staggering $1,243,070. As interest rates rose throughout 2022, prices crept down. By the end of December, the average was $1,017,989, a decline of around 18%.
“When interest rates started to increase in March 2022, motivated sellers began listing properties at appropriate market value and accepting offers at any time as opposed to listing low and holding offer presentations in hopes of a bidding war,” explains local Zoocasa real estate agent Ross Aitken. “Once the market began shifting, more listings were selling conditionally, which gave buyers negotiating power.”
At the market’s peak in April, a home in Toronto would sit on the market for roughly 15 days. By December, that number had grown massively to 40 days on the market, a year-over-year increase of 21 days or 110%, meaning that homes were trading hands at a much slower rate.
Condos have become more popular in Toronto as rates have increased. As interest rates increased, condos became the standout property type in the city, says Aitken. “Affordability was tightened because of rising rates, which meant that many buyers that wanted a freehold property had to shift their mindset.”
The outlook for the Toronto real estate market depends greatly on interest rates. Current and prospective home owners are crossing their fingers that the Bank of Canada will hold rates or even lower them to increase market affordability. If home prices and mortgage rates stabilize, many of the buyers who chose to wait out the market may be tempted to jump back in.
“Some first-time buyers were hesitant to enter the market last year, but their interest is beginning to grow again, especially as we’re seeing more homes listed at appropriate market value and interest rate [hikes] easing,” Aitken says.
The average home price in Toronto has fallen below the $1-million mark as of January, and with rate hikes possibly subsiding, we could start to see some bidding wars, albeit likely fewer than during the pandemic. Assuming that sellers price their homes fairly, more buyers will return to the table.
Aitken says, “The best advice I can give buyers is to be ready with their mortgage pre-approvals, because listings that are priced competitively will move quickly.”
Located in southeast Toronto, Port Union Village is a relatively new neighbourhood that offers direct access to Highway 2A, the waterfront and several amenities. This scenic community stands out for its quaint charm and continued real estate price growth. The average selling price of a home at the end of 2022 was $1,171,854—13% higher than one year earlier and 42% higher than five years earlier—giving it a value score of 3.7. It also has a respectable economics score of 4.3. The neighbourhood is bordered by several schools and parks, a bonus for the 56% of households that have children. It’s moderately walkable, with an accessibility score of 2.
View Port Union Village real estate listings on Zoocasa.
Centennial, also known as West Rouge, is a family-friendly neighbourhood in the southeast corner of Toronto. The neighbourhood features several parks and elementary schools, and it is close to Rouge Hill GO Station. Homes in the neighbourhood had an average selling price of $1,275,882 at the end of 2022, 15% higher than one year earlier and 42% higher than five years earlier. Centennial has a value score of 3.7 and an economics score of 4.3. The suburban neighbourhood has an accessibility score of only 2, but its parks and schools appeal to families; 56% of households have children.
View Centennial real estate listings on Zoocasa.
For the third year in a row, Thorncliffe Park secured a spot as one of the top neighbourhoods in Toronto. Located in East York, this multicultural neighbourhood offers residents convenience and affordability. At the end of 2022, the average home price in Thorncliffe Park was $720,090, the lowest among all the neighbourhoods on our list. The average price was 12% higher than one year earlier and 46% higher than five years earlier, giving the neighbourhood a value score of 3.7. Thorncliffe Park residents have easy access to a shopping mall, library, park and community centre. The neighbourhood has an economics score of 4.3.
View Thorncliffe Park real estate listings on Zoocasa.
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