Brampton, ON real estate market outlook 2023
We sat down with our realtor partner Sasha Vella to give us an outlook on the Brampton real estate market for 2023.
If you’re looking to buy in the Brampton area you can reach Sasha here:
How has the Brampton real estate market performed in 2023?
While inflation soared and interest rates were held high, we’ve seen a lot less activity in 2023 compared to 2022 in Brampton. The Brampton real estate market has seen a dip in sales of nearly 50% in Q1 2023 compared to Q1 2022.
According to TRREB Market Watch, the total sales for all home types in Brampton for Q1 2022 were 2,441 which fell by 1,175 to 1,266 in 2023. The average price across all home types in Brampton quarterly compared year over year is down by $314,000 while the accumulation of new listings in Q1 2022 also fell from 4,411 to 2,020 in Q1 2023. We are seeing properties sit on average for about 2 weeks more than we saw in Q1 2022. This type of activity has opened doors for buyers who can qualify to be able to buy in a less competitive market under more favorable terms. Traditionally the Spring Market brings out more inventory, as well as more buyers. With warmer weather, properties show better during these months and it tends to be easier for those to move and settle by fall.
How has the market responded to the rate hikes from the Bank of Canada?
Rate hikes pushed a lot of buyers out of the buyer pool and knocked the unsure buyers out of the market. The market has shown a lot of potential opportunities for investors, those with equity, and side-line buyers in a good financial position. Many sellers were forced to sell over the past year. Some who bought at the peak of the market lost out, while others won by scoring properties for cheap in this limited inventory market.
What factors do you see impacting the market?
Interest rates and affordability are a huge factor for buyers who are looking to get into the market. Ultimately, supply and demand drives the market into either a sellers’ advantage or buyers’ market. When inventory can’t meet the demand, buyers compete for housing which drives prices up. When there is more supply than demand, buyers have more options and sellers may let their property go for less, especially when their motivation to sell is high.
Recommended reading: Canada interest rate forecast 2023-2024
Where do you see the market going in the future?
Brampton is expecting a lot of immigration over the next few years, which will be a major driver of demand. By the end of Q2 2023, we have already witnessed more buyers getting comfortable with current interest rates, especially due to the Bank of Canada holding rates steady during the last two announcements. I am seeing more competition due to an influx of buyers in response to this. If we see another interest hike it may cause hesitation on the buyer’s side and we might see prices drop further.
What advice would you give to someone thinking about buying in Brampton?
Brampton is growing right now as they continue to revamp the downtown core and build out the edges of the city. It is a great place to invest or to buy and raise a family. Although Peel in general is an expensive, growing region there are many neighborhoods with great purchasing opportunities and plenty of potential. If you are thinking about buying in Brampton I would urge you to consider working with a professional who can educate you on what matters most to you (location, future potential, zoning, etc.) to help you make the most with your investment.
Check out our interest rate forecast for an up to date outlook on the mortgage market, including where our analysts predict rates will go over the next 5 years.