toronto real estate

Toronto Real Estate Market Report

Toronto Real Estate Market Report
September 2022

Toronto Real Estate Market Report - September 2022

 

The Greater Toronto Area housing market continued its adjustment to higher borrowing costs in September 2022. Sales for the month reached 5,038 – still down 44.1% from September 2021.

New listings were also down on a year-over-year basis by 16.7% to 11,237. This was the lowest number of new listings reported for the month of September since 2002. It seems apparent that many sellers are waiting for prices to trend higher before listing their properties.

A recent poll suggests that the public agrees the lack of housing supply is a key issue in the GTA. The poll found that 71% of GTA residents believe that municipalities should focus their efforts on increasing the supply of homes for sale and rent rather than trying to reduce demand for housing.

Candidates running in the upcoming municipal elections must ensure home buyers and renters have adequate housing options in the years to come. Municipal council decisions have a direct impact on housing affordability, in terms of the protracted development approval processes, high development fees and other related policies that preclude timely housing development.

If councils continue to support policies that restrict new home development and existing home listings, such as exclusionary zoning, housing affordability will be severely hampered over the long term, which will also hamper our region’s future growth.

The average sale price of homes in the GTA rose for a second straight month, with September 0.6% higher than August, which was 0.4% higher than July. This is the first time we’ve seen a month-over-month increase since the beginning of the year and the first time we’ve had sequential increases since 2021. Strange, though, in the first month to post a lower price than in 2021 in all of 2022. But it looks like we may have passed the “bottom” of the market, in July.

The MLS Home Price Index (HPI) was up on a year-over-year basis by 4.3%, while the base average price dipped by 4.3% to $1,086,762. Hovering just below $1.1 million, the average selling price may have found some support during the last couple months of summer. With new listings down quite substantially year-over-year and well-below historic norms, some home buyers are experiencing tighter market conditions in some neighbourhoods. October generally represents the peak of the fall market, so it will be important to see where price trends head over the next month.

 

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