In Jan '23, Toronto real estate market saw stability from the previous month, but a significant drop from last year with 16.4% decrease in average home prices and 44.6% decline in sales volume. BoC suggested it may hold interest rates depending on the economic outlook.
In 2022, the GTA saw 75,140 home sales, a low not seen since 2008. This is a 38.2% decrease from 2021’s record breaking high of 121,639. Average selling price was $1,189,850, which was up 8.6% from $1,095,333 in 2021.
TRREB reported fewer sales and new listings compared to last year due mostly to higher borrowing costs. From Oct 2022, average prices and sales volume of all housing types went through decline except detached homes, which had some price support after experiencing the greatest price drops from this year's peak.
Average sale prices and volumes have remained steady for the previous three months. While most home types decreased in value from last year, condos retained their value best. Affordability and economic uncertainty continue to be issues affecting demand, which seems balanced with relatively low new inventory.
The effects of inflation, interest rate hikes, and improved supply were not able to curb modest price growth from the previous month. There was still some demand to buy, but not at the same prices as last year, especially for detached homes, leaving many listings still active.
Prices similar to last month and last year. Volume up from last month and down 34.2% from last year. Sales of detached homes were stronger relative to others compared to last month while prices remained down year-over-year. Increased interest rates will likely continue to apply pressure on prices.
Demand has not kept up with the moderate supply levels. Sales volume continued to decline through seasonality and concerns over affordability. Overall home prices also fell by 6.2% from the previous month but are still up 1.2% from last year. Expensive home segments were more heavily affected.
Home prices decreased by 5.5% and volume decreased by 11.1% from May 2022 but prices are still up from last year. The market appeared slower, despite more active listings.
Mortgage and affordability concerns have pushed prices down and certain buyers may be waiting for prices to stabilize before re-entering the market despite higher borrowing costs.
More active listings and borrowing costs pushed prices down from last month, but remained up from last year. Still, sales volume is still down from last month and last year.
While borrowing costs and inflation have pushed buyer power down, demand may still get support from low supply, favourable employment, and immigration.
Compared to March 2022, active listings were on the rise, prices and volume came down from the previous month. This suggests a growing gap between seller expectations and buyer demand. High inflation and sharp rises in mortgage rates were noted as major factors. Still, conditions supported an impressive 15% price growth from last year even with more listings.
