The average price of a home in the Greater Toronto Area is expected to creep up during the year before ending lower than last year as reluctant buyers get off the sidelines.

The Toronto Regional Real Estate Board thinks the average selling price this year will fall 4% to $1,140,000 — compared with $1,189,912 last year — but up 39% from $819,513 in 2019.

TRREB predicts sales will fall to 70,000 from 75,107 last year; which would be the lowest level since 2001.

”It will be a year of two halves in 2023.

The first half will feel similar to the fall of 2022 due to the lingering effects of higher borrowing costs and related economic uncertainty,” according to Jason Mercer, TRREB’s chief market analyst.

”The second half of 2023 should be characterized by an increase in demand for ownership housing, supported by lower fixed mortgage rates, a relatively resilient labour market, and record immigration.”