Despite a
10-month-long market downturn, the average home price in the Greater Toronto
Area (GTA) for all of 2022 sat up 8.6% from the year prior.
This data
comes as part of the latest Toronto Regional Real Estate Board (TRREB) housing
market report, which revealed an average 2022 selling price of $1,189,850 up
from the $1,095,333 seen in 2021.
GTA home
prices began their aggressive climb in early 2021, continuing into 2022 before
reaching their peak in February. Those two months of strong price growth at the
beginning of the year, TRREB says, are what fuelled the annual increase, even
amidst a market correction.
In the city
of Toronto, home prices averaged $1,140,595 in 2022, which was lower than the
$1,218,724 average seen in the rest of the GTA. But Toronto detached homes
easily won out as the most expensive home type this year, averaging $1,792,149.
The cheapest homes were found in the form of 905-area condos, which averaged just
over $705K – a 15.6% jump from one year prior.
As for how
the year ended, December GTA Home prices averaged $1,051,216 – a small dip from
November’s $1,070,395, and continuing a downward trend that will almost certainly
carry into the first half of 2023. On a year-over-year basis, December’s
average price was down 9.2%. In fact, December prices were down year-over-year
in all but one category of homes: Toronto condo apartments, which were up 1.4%.
Home
Sales Took A Sizeable Hit
As prices
made it out of the year with an overall bump, the number of sales didn’t follow
suit. In 2022, TRREB recorded a total of 75,140 sales, marketing a whopping
38.2% decline from 2021’s record-high 121,639. Last year also saw 152,873 new
listings, which is down 8.2% from 2021.
Although the
winter months are typically slower for the real estate market, December saw
just 3,117 sales in the GTA and 4,074 new listings.
“While home
sales and prices dominated the headlines in 2022, the supply of new listings
continued to be an issue as well,” said TRREB Chief Market Analyst Jason
Mercer. “The number of homes listed for sale in 2022 was down in comparison to
2021. This helps explain why selling prices have found some support in recent
months. Lack of supply has also impacted the rental market. As renting has
become more popular in this higher interest rate environment, tighter rental
market conditions have translated into double-digit average rent increases.”
With the
Bank of Canada’s overnight lending rate sitting significantly higher than the
0.25% it started the year with TRREB CRO John DiMichele says that the financial
barrier is likely to continue dampening the market.
“As we look
forward into 2023, there will be two opposite forces impacting the housing
market. On the one hand, we will continue to feel the impact of higher
borrowing costs,” DiMichele said. “On the other hand, record levels of
immigration will support demand for ownership and rental housing, while we
struggle to come to terms with a housing and infrastructure deficit in the
Greater Golden Horseshoe.”
Source
By: STOREYS