The Toronto Real Estate Board (TRREB) is reflecting on a tumultuous year for the GTA’s real estate industry, marked by shifts in selling prices and a decrease in overall sales compared to the previous year.
The board is sharing data from 2022 that paints a clearer picture of how rising interest rates, affordability, and economic uncertainty impacted the market.
Overall, 75,140 sales were reported through MLS in 2022— down 38.2 per cent from 2021’s record of 121,639, while the number of new listings was down 8.2 per cent compared to 2021.
“This helps explain why selling prices have found some support in recent months,” says Jason Mercer, chief market analyst for TRREB.
A strong start to the year saw the average selling price up 8.6 per cent annually, from $1.09 million in 2021 to $1.19 million in 2022, according to TRREB.
The board is also sharing market insights from December 2022.
Last month’s average selling price was $1.05 million, about 11 per cent below the 2022 average.
Toronto’s housing market also saw a significant slowdown in sales in December, with 3,117 reported, a drop of 48.2 per cent year-over-year.
This number is also relatively close to sales from April 2020, when the world was in lockdown, and the economy came to a halt.
That month, TRREB reported 2,975 sales and 6,174 new listings in the GTA.
New listings in December 2022 decreased to 4,074, a 21.3 per cent drop from the previous year.
Though it’s not an “apples-to-apples” comparison, as Mercer points out, it is indicative of how the market has slowed.
“Sales for December are definitely low from a historical perspective,” he says.
Daniel Foch, broker and director of economic research for Rare Real Estate in Toronto, highlights that while volume typically tapers off at the end of the year, even he was surprised by the “extremely low volume” December 2022 saw.
“Everybody’s very hyper-aware of interest rates and house prices. And I think we got to the end of this almost maniacal period…and the music just stopped in February,” he says.
Foch reflects, “In periods of economic uncertainty, Canadians typically respond by pausing major purchase decisions. It’s maybe not a reflection that all is lost, but just that we’re in a period of people trying to figure out what’s next, and the market takes a breath for a second when that happens.”
Jordana is the editor of Real Estate Magazine. You can reach her by email.
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