Rising interest rates continue to dampen once red-hot housing markets, and Toronto is no exception.
The Toronto Regional Real Estate Board (TRREB) released its November 2022 market statistics on Tuesday morning, and GTA home sales are down 49.4 per cent year-over-year. Realtors reported 4,544 sales through TRREB’s MLS last month compared to 8,979 in November 2021.
Average selling price down by 7.2%
New listings were down “substantially from last year and at a very low level historically,” according to TRREB. Nearly 9,000 new listings were added last month, down on both a year-over-year basis and a month-over-month basis.
The average selling price was down by 7.2 per cent year-over-year from $1.16 million in November 2021 to $1.08 million in 2022. According to TRREB, low supply has supported average selling prices since August.
“Selling prices declined from the early year peak as market conditions became more balanced and homebuyers have sought to mitigate the impact of higher borrowing costs. With that being said, the marked downward price trend experienced in the spring has come to an end. Selling prices have flatlined alongside average monthly mortgage payments since the summer,” said Jason Mercer, chief market analyst for TRREB.
Greater price declines for more expensive home types
Annual price declines continued to be greater for more expensive home types, including detached and semi-detached. The average price of a detached home in Toronto was down nearly 14 per cent, and the cost of a semi-detached house was down 17 per cent. The average price of a condo was down 1.5 per cent year-over-year, while the cost of a townhome increased 1.4 per cent.
“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,” says Kevin Crigger, president of TRREB. “The long-term problem for policymakers will not be inflation and borrowing costs, but rather ensuring we have enough housing to accommodate population growth.”
Read the full report here.
Yes Nov 2021 was an all-time Record November for arranged transactions
Generally since June TrREB has been 30-40% off the 10 year Average for monthly sales (of that same month) and been running about 50% of a Booming Month (of that same month)