Central Toronto Real Estate TRREB Released November, 2022 Resale Market Figures
Homeownership market activity in November, 2022 continued to be influenced
by the impact of higher borrowing costs on affordability. Sales were down
markedly compared to the same period in 2021, following the trend that
unfolded since the commencement of interest rate hikes in the spring, 2022.
New listings were also down substantially from 2021, and at a very low level
historically. The fact that the supply of homes for sale has remained low, has
supported average selling prices at the $1.08 to $1.09 million mark since
August, 2022.
Greater Toronto Area (GTA) REALTORS® reported 4,544 sales through TRREB’s
MLS® System in November, 2022 – down 49 per cent compared to November,
2021, but remaining at a similar level to October especially after considering the
recurring seasonal downward trend in the fall. New listings, at 8,880, were down
on both a year-over-year basis and month-over-month basis.
Increased borrowing costs represent a short-term shock to the housing market.
Over the medium- to long-term, the demand for ownership housing will pick
up strongly. This is because a huge share of record immigration will be pointed
at the GTA and the Greater Golden Horseshoe (GGH) in the coming years, and
all of these people will require a place to live, with the majority looking to buy.
The long-term problem for policymakers will not be inflation and borrowing
costs, but rather ensuring we have enough housing to accommodate
population growth.
We have seen a lot of progress this year on the housing supply and related
governance files such as the More Homes Built Faster Act. This is obviously
good news. However, we need these new policies to turn into results over
the next year. Otherwise, the current market lull will soon be behind us,
population growth will be accelerating, and we will have done nothing to
account for our growing housing need. The result would be enhanced
unaffordability and reduced economic competitiveness.
The MLS® Home Price Index Composite Benchmark was down by 5.5
per cent year-over-year in November, 2022. The average selling price
for all home types combined was down by 7.2 per cent
year-over-year. Annual price declines continued to be greater
for more expensive market segments, including detached and
semi-detached houses.
Selling prices declined from the early year peak as market conditions
became more balanced and homebuyers have sought to mitigate the
impact of higher borrowing costs. With that being said, the marked
downward price trend experienced in the spring has come to an end.
Selling prices have flat-lined alongside average monthly mortgage
payments since the summer.
Source: trreb.ca/
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