Wrapping Up 2022: What’s Happening In The Market?

As we move into the new year, we’re taking a look back at the Greater Toronto Area (GTA) 2022 home market trends. With a very strong start to the year, home sales trended lower during the second half of 2022 as a response to the Bank of Canada’s aggressive rate hikes.

A combination of the increase in borrowing costs for homeowners, and a lack of both housing supply and relief from the Office of the Superintendent of Financial Institutions (OFSI) including the mortgage stress test, prices adjusted downward along with home sales to compensate for higher mortgage rates. The average selling price in December of 2022 was $1,051,216, down from $1,157,837 in December of 2021. However the average selling price for 2022 overall was up 8.6% from 2021. The increase is in large part due to the strong start in 2022 which then moderated from spring onwards.

A total of 75,140 sales were reported through TRREB’s MLS System in 2022, representing a 38.2% decrease compared to 2021. The number of new listings also trended downward, with 152,873 new listings reported – an 8.2% decrease compared to 2021.

The decrease in listing supply supported the levelling off of home prices in the late summer months as well as fall of 2022. While market adjustments in the spring months were quite aggressive, prices remained robust in the second half of 2022. This lack of supply has also affected the rental market in the GTA. With more households choosing to rent due to high mortgage rates, rental market conditions have tightened, with rental prices experiencing double digit growth.

There is no doubt that transacting in Real Estate has certainly transformed these last few years. We have had the pleasure of servicing our clients through these unprecedented times, andwill continue to do so as the real estate market climate change. Despite the recent cooling of sales, the Toronto Real Estate Market still remains one of the strongest markets in the world, and we can offer our guidance and expertise to help you make the next real estate move that is right for you and find ways to take advantage of the current market. Contact us today for a no-obligation discussion on how we can help you throughout your real estate journey.