December 2022
The Toronto Regional Real Estate Board released its final numbers for the year this week and there is a lot of interesting information
Following a very strong start to the year, home sales trended lower starting in the spring and continued throughout the balance of 2022 as aggressive Bank of Canada interest rate hikes hampered housing affordability, putting downward pressure on prices to mitigate the impact of the higher mortgage rates.
As we compare December 2022 with December of last year the adjustments in our market have become more evident.
Sales volume is down just over 48% with active listings up 169%. With sales down and the supply of available homes up, downward pressure on pricing has begun to set in. Prices are down 9.2% this past December compared to December 2021.
With the jump in supply of all available home types the Months of Inventory number still remains in seller’s market territory.
The supply of available homes for sale is still considered low which is assisting in the easing of prices; hence we are not seeing substantial price declines.
Condominium pricing remains flat even with the volume of sales down over 50%.
Condominiums still remain an affordable way to enter the residential real estate market, with borrowing rates on the rise and the average price of freehold properties slowly moderating, condos remain in demand amongst first time buyers and investors.
With inflation rates still running high we are anticipating another rate increase from Bank of Canada this January. Until we see some consistency in interest rates the inventory of available homes for sale will continue to rise, further moderating prices and giving buyers more choice. 2023 is going to be an interesting year for real estate. Anytime there is a change in the market opportunities present themselves, I am always happy to discuss what those opportunities might look like for you.
To understand more about how to invest and where opportunities lie in this market please do not hesitate to reach out to me.
As always, I am here to assist you with all your real estate needs, so please never hesitate to reach out to me with any of your questions