November 17, 2022 | Market Update
As the Greater Toronto Area (GTA) real estate market continues to adjust to higher borrowing costs, interesting trends have emerged since prices slowed in the spring. While GTA REALTORS reported only 4,961 home sales in the resale market in October 2022 – down 49.1% compared to October 2021 – this number is not significantly lower than the number of sales in September 2022. Coupled with the fact that the number of new listings was down by 11.6% year-over-year, less supply means that average prices have not dropped, but remained relatively flat.
The MLS Home Price Index (HPI) Composite Benchmark experienced a 1.3% drop year-over-year, while the average selling price in the GTA was down by 5.7% year-over-year, from $1,155,624 in October 2021 to $1,089,428 in October 2022. Condo apartments and townhomes experienced the lowest drop in prices, in part due to the fact that supply was lowest for these segments of the market.
TRREB President Kevin Crigger affirmed that demand for housing will continue to grow in the long run, despite short-term uncertainties. With new listings dropping to historic lows, any uptick in demand will see tightening in the market in the short term.
TRREB Chief Market Analyst Jason Mercer noted that the more dramatic price drops in the spring and summer have helped to ease the impact of higher borrowing costs. Bond yields have also dipped recently, in line with the Bank of Canada’s messaging that the rate tightening cycle is nearing an end. This means that fixed rates are expected to level out, which is positive news to buyers.
There is no doubt that transacting in Real Estate has certainly transformed these last few years. We have had the pleasure of servicing our clients through these unprecedented times, andwill continue to do so as the real estate market climate change. Despite the recent cooling of sales, the Toronto Real Estate Market still remains one of the strongest markets in the world, and we can offer our guidance and expertise to help you make the next real estate move that is right for you and find ways to take advantage of the current market. Contact us today for a no-obligation discussion on how we can help you throughout your real estate journey.