What began as an extension of 2021’s high-flying real estate buying and selling frenzy soon enough tumbled and fell to a near standstill with the Bank of Canada’s hiking interest rates.  As rates rose, resale home sales fell and property sat on the sidelines far longer than expected, bucking the norm that Toronto’s Sellers had become accustomed to - transitioning Toronto from a strong ‘Sellers Market’ into a ‘Buyers Market’.  Paradoxically 2022, much like 2021, remained another challenging year for home and condo Buyers due to supply and affordability, however the forces at play were quite different.   We’ve taken a retrospective look at the year 2022 and identified the following three insights.   ​

➕‘the numbers’ for the first month of 2023 are in, and as expected, the data reflects a continuation of late 2022 trends.  The number of sales in January were similar to December, but are down significantly [-51%] when compared to the highly active January 2022 market.  Average selling prices in January across all property segments in January were down -8% vs. January 2022 - continuing to reflect the impact of higher borrowing costs.  As of January last year, the prime rate was 2.45% vs. 6.5% for January 2023.


“Home sales and selling prices appear to have found some support in recent months. This coupled with the Bank of Canada announcement that interest rate hikes are likely on hold for the foreseeable future will prompt some buyers to move off the sidelines in the coming months. Record population growth and tight labour market conditions will continue to support housing demand moving forward,” said Toronto Regional Real Estate Board (TRREB) President Paul Baron.
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Looking to buy or sell a home in Toronto?  Average prices in January were as follows:

➕Detached $1,486,124 [-21% vs. 2022]
➕Semi-detached $1,150,506  [-22% vs. 2022]
➕Townhouse $981,187 [-9% vs. 2022]
➕Condo $711,171 [-7% vs. 2022]
••••••
Data presented is for City of Toronto Only.   Source: TRREB.

➕‘the numbers’ for November are in!  The market continues to be influenced by higher borrowing costs that commenced in the spring.  Total Sales have flattened month over month and remain down -50% when compared to November 2021.   However with inventory [new listings] near historic lows, the supply/demand equation has found some balance enabling average prices to stabilize since August.  That said, average selling prices remain down -4% in November vs. 2021, with declines are more pronounced in expensive market segments, including detached and semi-detached houses.


“Increased borrowing costs represent a short-term shock to the housing market. Over the medium- to long-term, the demand for ownership housing will pick up strongly. This is because a huge share of record immigration will be pointed at the GTA and the Greater Golden Horseshoe (GGH) in the coming years, and all of these people will require a place to live, with the majority looking to buy. The long-term problem for policymakers will not be inflation and borrowing costs, but rather ensuring we have enough housing to accommodate population growth,” said TRREB President Kevin Crigger.
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Looking to buy or sell a home in Toronto? Average prices in November were as follows:
➕Detached $1,560,548  [-14% vs. 2021]
➕Semi-detached $1,187,0162  [-17% vs. 2021]
➕Townhouse $995,074 [+1% vs. 2021]
➕Condo $734,797 [-1% vs. 2021]

➕‘the numbers’ for October are in!  The Toronto housing market continues to adjust to increasing borrowing costs.  Total Sales for Toronto were down -50%, new listings also declined by -20%, and active listings increased +26% when compared to last October in 2021.


Of particular note, new listings were near historic lows and as a result multiple offers on desirable properties were not uncommon. The average price of a Toronto home experienced the third consecutive month over month gain -  from a low of $1,019,100 in July to  $1,091,097 in October.


Finally, we recognize that economic uncertainty will remain a significant driver of the short term market dynamics in Toronto, however we also expect a rebound in the medium-longer term.


Looking to buy or sell a home in Toronto? Average prices in October were as follows:


➕Detached $1,609.077  [-10% vs. 2021]
➕Semi-detached $1,219,812  [-8% vs. 2021]
➕Townhouse $1,003,359 [-2% vs. 2021]
​➕Condo $740,374 [-11% vs. 2021]

​Data presented is for Toronto Only.   Source: TRREB.

➕‘the numbers’ for September are in.  As the housing market continues to adjust to higher borrowing costs, the the sales volume for Toronto in August 2022  was down -49%, and new listings declined by -24%.  The market conditions for month of September moved Toronto into a ‘Buyer’s Market’, however a continuation of tightening market can be seen with an average increase of +5% in overall prices - driven by the gains in the condo and townhouse segments, as well as certain neighbourhoods within Toronto.


For Sellers, the average selling prices in the ‘416’ were:  detached houses [-11%], semi-detached houses [-7%], townhouses [+1%] and condos [+3%] vs. September 2021.


Looking to buy or sell a home in Toronto? Average prices in September were as follows:


➕Detached $1,585,589
➕Semi-detached $1,210,715
➕Townhouse $943,922
➕Condo $769,058
••••••
Data presented is for Toronto Only.   Source: TRREB.