Canadian 2023 Home Sales and Prices Drop to Lowest Level Since 2000


  • Residential property sales in Canada’s largest city saw a slump of 12.1% in 2023, with the transaction numbers reaching the lowest since 2000, at 65,982.
  • The average residential property sale price also reduced by 5.4%, hitting C$1,126,604 ($843,771).
  • Intensified borrowing costs and challenging federal mortgage eligibility standards have made homeownership unachievable for a considerable number of households in 2023, according to TRREB President Jennifer Pearce.
  • The Bank of Canada indicates possible lowering of interest rates in 2024, if inflation is managed as anticipated.
  • An uptick in home prices and sales is expected in 2024 courtesy of declining borrowing costs and economic resilience.

2023: A Challenging Year for Canada’s Property Market

2023 witnessed a significant downturn in residential property sales in Canada’s largest metropolis, falling by 12.1% to 65,982 transactions. This scenario amounted to the lowest sales figures since 2000. Concurrently, the average sale price also took a dip, falling by 5.4% to C$1,126,604 ($843,771).

Reasons for the Dip in Home Sales and Prices

TRREB President Jennifer Pearce notes that high borrowing costs, in addition to stringent federal mortgage criteria, led to many households finding homeownership out of reach in 2023.

Optimistic Outlook for 2024

A more positive outlook is held for 2024, with lowered borrowing costs anticipated. Jennifer Pearce further opines that a relatively robust economy, paired with lesser mortgage rates, should lead to a revival in home sales during the year.

Bank of Canada’s Position

In 2024, The Bank of Canada may reduce interest rates if inflation moderates as projected. The current interest rate has been at a 22-year high of 5% since July.

Home Sales in December 2023

On a seasonally adjusted basis, home sales increased by 21.3% from November to December 2023, amounting to 6,052 homes, the first rise since May. The average price also expanded by 2.5% to C$1,130,263 ($846,512), nullifying pretty much most of the preceding month’s decline.

The exchange rate utilized for currency conversion is $1 = 1.3352 Canadian dollars.

Both foreign exchange and trade markets could see substantial impacts from these developments, especially assets linked to the Canadian dollar and the Canadian real estate market.

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