Lower home sales in the Greater Toronto Area
Transactions dropped by 38% between 2021 and 2022, according to the Greater Toronto Real Estate Board.
The year 2022 has been marked by a decline in real estate transactions in the area, according to data from the Greater Toronto Real Estate Board (TRREB).
In 2022, sales in the Greater Toronto fell by 38.2% compared to 2021. Concretely, 75,140 transactions were declared last year by the real estate board, while the TRREB recorded 121,639 the previous year.
For its part, supply fell by 8.2%. The real estate board had 152,873 properties for sale in 2022, compared to 166,600 a year earlier.
Seasonally-adjusted monthly sales data […] show a marked flattening of sales trends since […] the end of the summer, the real estate board wrote in a statement released Thursday.
Affordability issues caused by the lack of housing supply have been exacerbated by interest rate hikes, she said. After a strong start to the year, home sales tended to decline in the spring and summer of 2022 as significant interest rate hikes by the Bank of Canada further hampered housing affordability.
As far as prices are concerned, the trend is opposite since they have increased by 8.6%. The average selling price in 2022 was $1,189,850, up from $1,095,333 in 2021, according to the Toronto Real Estate Board.
However, house prices began to stabilize at the end of the summer, said TRREB President Paul Baron, who believes that the significant market adjustment may be coming to an end.
TRREB's chief market analyst Jason Mercer adds that the lack of supply has also had an impact on the rental market. As renting has become more popular in this higher interest rate environment, tighter rental market conditions have translated into average double-digit rent increases, he explains.
For his part, Real Estate Board Chairman and CEO John DiMichele says the impact of rising borrowing costs will continue to be felt in 2023.
Record levels of immigration will support demand for owner-occupied and rental housing, he concludes, highlighting the housing and infrastructure deficit in the Greater Golden Horseshoe region.