Home sales and listings down as sale price and rent rise
TORONTO, Jan. 05, 2023 (GLOBE NEWSWIRE) — The Greater Toronto Area (GTA) housing market saw a marked adjustment in 2022 from record highs in 2021. Existing affordability issues caused by a lack of housing supply were exacerbated by one of the interest rate hikes by the Bank of Canada.
“After a very strong start to the year, home sales tended to decline in the spring and summer of 2022 as the Bank of Canada’s aggressive interest rate hikes further hampered housing affordability. . In the absence of Office of the Superintendent of Financial Institutions (OSFI) mortgage stress test relief or other mortgage guidelines, including amortization periods, home sales prices have been adjusted down to mitigate the impact of rising mortgage rates. However, house prices began to stabilize at the end of the summer, suggesting that the market’s aggressive early adjustment may be coming to an end,” said the new chairman of the Toronto Regional Real Estate Board (TRREB), Paul Baron.
In 2022, 75,140 sales were reported through TRREB’s MLS® system, down 38.2% from the 2021 record of 121,639. New listings totaled 152,873, a down 8.2% from 166,600 new listings in 2021. Seasonally adjusted monthly sales and price data show a marked flattening in sales and price trends since late summer.
“While home sales and prices dominated the headlines in 2022, the supply of new listings also continued to be an issue. The number of homes listed for sale in 2022 was down from 2021. This helps explain why sale prices have found some support in recent months.Lack of supply has also had an impact on the rental market.As renting has become more popular in this higher interest rate environment high, tighter rental market conditions translated into double-digit average rent increases,” said TRREB Chief Market Analyst Jason Mercer.
The average selling price for 2022 was $1,189,850, up 8.6% from $1,095,333 in 2021. This growth was based on a good start to the year, in terms of price growth of year to year. The growth rate moderated from spring 2022.
“As we look to 2023, two opposing forces will impact the housing market. On the one hand, we will continue to feel the impact of rising borrowing costs. record immigration will support demand for homeownership and rental housing as we struggle to address the housing and infrastructure deficit in the Greater Golden Horseshoe.These themes will be addressed in the next report on market outlook and year in review for the TRREB which will be released in early February,” said TRREB CEO John DiMichele.
Results December 2022
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In December 2022, 3,117 sales were reported through the TRREB’s MLS® system, a decrease of 48.2% compared to December 2021.
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New listings totaled 4,074, down 21.3% from 5,177 in December 2021.
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The composite benchmark MLS® Home Price Index was down 8.9% year over year in December 2022.
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The December average sale price of $1,051,216 was down 9.2% from the December 2021 average of $1,157,837.
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TRREB MLS® System Cumulative Sales and Average Price Summary December 2022 |
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|
2022 |
2021 |
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|
Sales |
Average price |
New listings |
Sales |
Average price |
New listings |
|
|
City of Toronto (“416”) |
27,769 |
1,140,595 |
55,448 |
43,488 |
1,056,503 |
63,062 |
|
Rest of GTA (“905”) |
47,371 |
1,218,724 |
97,425 |
78 151 |
1,116,940 |
103,538 |
|
GTA |
75 140 |
1,189,850 |
152,873 |
121,639 |
1,095,333 |
166,600 |
|
YTD TRREB MLS® System Sales and Average Price by Home Type December 2022 |
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|
Sales |
Average price |
|||||
|
416 |
905 |
Total |
416 |
905 |
Total |
|
|
Detached |
7,675 |
25,893 |
33,568 |
1,792,149 |
1,472,297 |
1,545,428 |
|
year/year. % Change |
-33.1% |
-40.1% |
-38.6% |
4.3% |
7.9% |
7.4% |
|
Paired |
2,567 |
4,329 |
6,896 |
1,366,946 |
1,073,877 |
1,182,970 |
|
year/year. % Change |
-34.2% |
-39.7% |
-37.8% |
5.3% |
12.1% |
9.8% |
|
Townhouse |
2,768 |
9,886 |
12,654 |
1,038,816 |
977 298 |
990 755 |
|
year/year. % Change |
-41.6% |
-38.9% |
-39.5% |
10.1% |
12.8% |
12.1% |
|
Condominium apartment |
14,540 |
6,783 |
21,323 |
782,538 |
705 606 |
758,066 |
|
year/year. % Change |
-37.1% |
-36.4% |
-36.9% |
9.6% |
15.6% |
11.3% |
Source: Toronto Regional Real Estate Board
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Summary of TRREB MLS® System Sales and Average Price from December 1 to December 31, 2022 |
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|
2022 |
2021 |
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|
Sales |
Average price |
New listings |
Sales |
Average price |
New listings |
|
|
City of Toronto (“416”) |
1,162 |
1,017,989 |
1,510 |
2,387 |
1,021,450 |
1,965 |
|
Rest of GTA (“905”) |
1,955 |
1,070,966 |
2,564 |
3,626 |
1,247,621 |
3,212 |
|
GTA |
3,117 |
1,051,216 |
4,074 |
6,013 |
1,157,837 |
5,177 |
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TRREB MLS® System Sales and Average Price by Home Type December 1-31, 2022 |
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|
Sales |
Average price |
||||||||||
|
416 |
905 |
Total |
416 |
905 |
Total |
||||||
|
Detached |
310 |
1,042 |
1,352 |
1,627,635 |
1,312,278 |
1,384,586 |
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|
year/year. % Change |
-44.9% |
-44.2% |
-44.3% |
-4.1% |
-16.4% |
-13.4% |
|||||
|
Paired |
83 |
155 |
238 |
1,152,073 |
933 122 |
1,009,479 |
|||||
|
year/year. % Change |
-45.8% |
-55.3% |
-52.4% |
-13.8% |
-15.9% |
-14.4% |
|||||
|
Townhouse |
110 |
414 |
524 |
878 984 |
860 736 |
864 567 |
|||||
|
year/year. % Change |
-47.4% |
-46.3% |
-46.5% |
-11.9% |
-13.4% |
-13.1% |
|||||
|
Condominium apartment |
646 |
320 |
966 |
741,584 |
633 135 |
705 659 |
|||||
|
year/year. % Change |
-55.3% |
-47.4% |
-52.9% |
1.4% |
-5.2% |
-0.9% |
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|
December 2022 Year-over-year percent change in HPI MLS® |
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|
Composite (all types) |
Detached Single Family |
Attached Single Family |
Townhouse |
Apartment |
|||||||
|
TRREB Total |
-8.90% |
-11.26% |
-10.23% |
-5.92% |
0.08% |
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|
Halton Region |
-12.96% |
-14.04% |
-14.66% |
-11.44% |
-0.61% |
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|
Region of Peel |
-10.24% |
-12.50% |
-12.10% |
-4.49% |
2.99% |
||||||
|
City of Toronto |
-6.93% |
-11.23% |
-9.37% |
-2.48% |
-0.08% |
||||||
|
York Region |
-5.29% |
-6.41% |
-5.30% |
-5.21% |
-1.67% |
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|
Durham Region |
-13.07% |
-13.65% |
-13.89% |
-9.71% |
-1.14% |
||||||
|
Orangeville |
-7.37% |
-7.78% |
-7.52% |
2.30% |
1.98% |
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|
South Simcoe County1 |
-11.97% |
-12.68% |
-9.77% |
-2.48% |
-2.34% |
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Source: Toronto Regional Real Estate Board |
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Please note that the methodology used to calculate the MLS® PPI has changed. For more information, click here.
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TRREB MLS® seasonally adjusted sales and average price1 |
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|
Sales |
% change from month to month. |
Average price |
% change from month to month. |
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|
December ’21 |
9,597 |
-3.2% |
$1,211,860 |
2.3% |
|
|
January 22 |
9,125 |
-4.9% |
$1,272,283 |
5.0% |
|
|
February 22 |
9,486 |
4.0% |
$1,284,734 |
1.0% |
|
|
March 22 |
8,033 |
-15.3% |
$1,251,950 |
-2.6% |
|
|
April 22 |
6,643 |
-17.3% |
$1,203,420 |
-3.9% |
|
|
May 22 |
5,971 |
-10.1% |
$1,168,921 |
-2.9% |
|
|
June 22 |
5,594 |
-6.3% |
$1,135,498 |
-2.9% |
|
|
22nd of July |
5,201 |
-7.0% |
$1,108,841 |
-2.3% |
|
|
August 22 |
5,731 |
10.2% |
$1,128,213 |
1.7% |
|
|
September 22 |
5,080 |
-11.4% |
$1,097,612 |
-2.7% |
|
|
October ’22 |
4,968 |
-2.2% |
$1,097,664 |
0.0% |
|
|
November 22 |
4,879 |
-1.8% |
$1,101,465 |
0.3% |
|
|
December ’22 |
4,933 |
1.1% |
$1,101,398 |
0.0% |
|
Source: Toronto Regional Real Estate Board; Seasonal adjustment of the AIT. 1 Preliminary seasonal adjustment undertaken by the Canadian Real Estate Association (CREA). Removing normal seasonal variations allows for more meaningful analysis of monthly changes and underlying trends.
READ THE FULL REPORT.
Media inquiries:
Genevieve Grant, Manager, Public Affairs genevieve.grant@trreb.ca 416-443-8159
The Toronto Regional Real Estate Board is Canada’s largest real estate board with over 70,000 residential and commercial professionals connecting people, properties and communities.
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