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Toronto Market Update – January 2023

Toronto Market Update – January 2023

2022 marked an interesting year for Toronto Real Estate. The changes in sales, inventory and interest rates significantly affected the market trends. Overall, the early months of the year started out with strong sales but steep increases in interest rates from the Bank of Canada led to slower sales progression from Spring to the end of 2022. The high rates affected both the initial affordability of home purchasing, as well as the continued mortgage payments impacting the market as a whole. My name is Britt Huggins, I am a Toronto real estate agent here to report December’s market stats. Let’s get to it.

When comparing the sales between 2021 and 2022, The Toronto Regional Real Estate Board (TRREB) shows the total number of 2022 sales to be 75,140, down from 2021’s number of 121,639. This marks a substantial 38.2% decrease from the previous calendar year. There was also a notable increase in the average residential selling price, showing a recorded $1,189,850 in 2022 compared to $1,095,333 in 2021. That marks an 8.6% increase, this is due to the successful sales starting in the early months (January, February and March).

It is evident that when comparing the stats from December 2021 and December 2022, price adjustments are being made. TRREB shows that the volume of sales has decreased to just over 48%, with an increase of 169% in market listings. It is clear that with the increase in available listings, and decrease in active sales, a downward pressure in pricing has begun–in fact the pricing trend has shown a decrease of 9.2% in December 2022 when compared to the previous year.

Even with the increase in available homes of all types, inventory is still at a low which contributes to the easing of prices, without a substantial pricing decline. It is still considered a seller’s market.

Condominium prices remain flat, though there is a marked reduction of 50% in sales, they remain in demand for both investors and first-time buyers. Rising interest rates and price moderation of freehold properties make condos a favourable way to jump into the real estate market.

In 2022, new build construction showed both a decrease in product on the market and lower sales volume. Investors appear to be waiting out the borrowing cost inconsistencies, and on some stability before investing in new opportunities. With construction costs remaining at a high, and borrowing costs continuing to rise, developers lack the ability to reduce model pricing substantially. In hopes of attracting new buyers and investors, they have presented new promotions such as cashback on closing and rental guarantees.

With the continued rise of inflation, another interest rate increase is expected from the Bank of Canada to occur this January. Without the stability of consistent interest rates, we can expect to see the volume of available inventory continue to increase, moderation of pricing to persist, and options for buyers to grow. This year looks like it will be an exciting year for the real estate market. We will witness the ups and downs of pricing, inventory, rates and more.

Let’s break down the stats by our most popular regional real estate markets: the GTA, Toronto, Mississauga, Oakville, Durham Region, and Brampton. Please note, the stats below are based on real estate sold year to date. For those who aren’t familiar with what year-to-date means, it is the total of something from the first day of the year through the current date.

GTA Real Estate Market Stats
When looking at all home types in December 2022, the average sale price in the GTA was up 8.6%% to $1,189,850 year to date, when compared to December 2021. When zooming in on condos, prices were down 0.9% to $705,659 year-to-date, when compared to this time last year.

Toronto Real Estate Market Stats
When looking at all home types in December 2022, the average sale price in Toronto was up 7.9% to $1,140,595 year-to-date, when compared to December 2021. When zooming in on condos, prices were up 1.5% to $741,584 year-to-date, when compared to this time last year.

Mississauga Real Estate Market Stats
When looking at all home types in December 2022, the average sale price in Mississauga was up 10% to $1,117,107 year-to-date, when compared to December 2021. When zooming in on condos, prices were down 6.7% to $612,597 year-to-date, when compared to this time last year.

Oakville Real Estate Market Stats
When looking at all home types in December 2022, the average sale price in Oakville was up 9.5% to $1,623,505 year-to-date, when compared to December 2021. When zooming in on condos, prices were up 23.3% to $922,750 year-to-date, when compared to this time last year.

Durham Region Real Estate Market Stats
When looking at all home types in December 2022, the average sale price in the Durham Region was up 10.7% to $1,024,570 year-to-date, when compared to December 2021. When zooming in on condos, prices were down 4.5% to $534,788 year-to-date, when compared to this time last year.

Brampton Real Estate Market Stats
When looking at all home types in November 2022, the average sale price in Brampton was up 12.4% to $1,170,860 year-to-date, when compared to November 2021. When zooming in on condos, prices were down 13.7% to $504,930 year-to-date, when compared to this time last year.

If you would like to discuss your 2023 real estate opportunities, please don’t hesitate to reach out!

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