In July, all 5,250 properties reported sold were contracted after only 17 days on the market (on average), while all properties sold for 102 percent of their asking price. In the City of Toronto, properties sold for 103 percent of their asking price.
Affordability is the main issue impacting the resale market. After a five-month pause in June, the Bank of Canada raised its overnight rate to 4.75 percent, the highest since 2001.
Shockingly seven eastern districts reported less than five semi-detached property sales - simply because of the lack of supply!
The number of new properties coming to market became even more troubling during April. Only 11,364 new listings became available in April for the many buyers waiting to buy.
February’s average sale price was almost 6 percent higher than the average sale price for all properties sold in January.
February’s sales results are the best we have seen in months. February’s sales are up 6 percent since November, 54 percent since December 55 percent since January. Similar to the volume of sales, the average sale price has also shown improvement.
In absolute numbers, 3,100 properties traded hands this January. Last year, 5,594 properties were reported sold. The decline in sales volumes and average sale prices are universal, impacting all housing types throughout the greater Toronto Region.
Last December, the average sale price was $1,157,877. December 2022's average sale price is almost 10 percent lower than last year.
One of the factors keeping average sale prices from falling below $1 million has been the lack of supply. In November, only 8,880 new properties came to market compared to 10,044 last year, a decline in inventory of almost 12 percent.
Average sale prices hit a low of $1,074,052 in July. At this point, rising mortgage interest rates were still being absorbed. However, since then, average sale prices have increased by almost 1.5 percent to $1,089,426, despite further mortgage interest rate increases.
Sales prices are now consistently lower than asking prices. That’s because buyers have more choices and multiple offer competitions are the exception and not the norm as they were during the height of the pandemic.
The sharp increases in the policy rate by the Bank of Canada continue to destabilize the residential resale market, not to mention the residential rental market (beyond the scope of this Report) that has seen rents increase by as much as 25 percent in a single year.
It should be noted that July’s average sale price was still 1.2 percent higher than July 2021’s average sale price of $1,061,724.
All properties (on average) sold in just 15 days, only 2 days more than the 13 days it took last year. (This number does not reflect properties that were listed, cancelled, then relisted at a lower price).
This months market performance should not be misinterpreted as a market correction.
All properties were (on average) sold at 107 percent of their asking price. In the City of Toronto, sales came in at 108 percent of their asking price, including condominium apartments.
Sales in February were lower than in the previous year; this is not surprising given that supply remains low. This year 9,097, a strong number by historical standards, was sold.
Sales in February were lower than in the previous year; this is not surprising given that supply remains low. This year 9,097, a strong number by historical standards, was sold.
The luxury market has also undergone a significant transformation over the past few years. In January, 590 properties were reported sold with a $2 Million or more sale price.
Marianne’s ongoing analysis of on and off market transactions, and wide network of industry connections allow her to anticipate and react to shifts in the market.
