To help put things in perspective, and to dispel the media negativity about GTA prices, it’s helpful to compare the annual data to the monthly December data. The December numbers are in – as shown in the chart.
What is encouraging is that the decline in prices on a month over month basis is lessening and prices started levelling off since August.
The monthly Average Price from December 2021 to 2022 – Down 9.2 %
The monthly Average Price from November 2022 to December 2022 – Down 2.6 %
The Annual Average Price for 2022 over 2021 was actually…. – UP 8.6 %
While the housing market in the Greater Toronto Area (GTA) experienced a shift in 2022, it also showed its resiliency in the face of rising interest rates. The average selling price last year in the GTA was $1,189,850, representing an 8.6% increase over the 2021 average of $1,095,333. The increase in average price growth is attributed to the strong start we saw in 2022. The pace of growth moderated from the spring of 2022 onwards. As interest rates increased, home sales trended lower in the spring and summer of 2022.
Transactions were down 38.2% compared to the record sales activity we saw in 2021, and home prices adjusted downward to accommodate the impact of higher interest rates. However, in August we saw home prices start to level off and remain steady for the remainder of the year.
Supply remained tight despite fewer transactions, and the lack of homes available for sale supported price stability and in some pockets of the GTA led to continued price increases, despite higher borrowing costs. The number of new listings was down 8.2% compared to 2021. Lack of supply also impacted the rental market and tight rental market conditions caused rental rates to skyrocket in 2022, up 23.7% in the GTA compared to last year.
On a monthly basis, in December, prices went down 2.6% month-over-month. The Toronto Regional Real Estate Board reported 3,117 sales in December 2022, down 48.2% compared to last December’s unprecedented level of activity, and new listings were also down 21.3% as compared to last year. Homes averaged 27 days on market, an average that is longer than the blistering pace we saw last December, however still shorter than the average days on market in December 2020 and December 2019.
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