Welcome to another episode of The Real Estate Podcast with me, Broker Nico James-Bock with Royal LePage Signature in Downtown Toronto. This is the first episode of 2023, a new year and new season. This first episode is also unique in that there is a Zoom recording of the podcast posted to my YouTube Channel, with charts and stats for you to view:
Podcast Season 1 Episode 1 YouTube
The Toronto Regional Real Estate Board released its final numbers for the year this week and there is a lot of interesting information. Following a very strong start to the year, home sales trended lower starting in the spring and continued throughout the balance of 2022 as aggressive Bank of Canada interest rate hikes hampered housing affordability, putting downward pressure on prices to mitigate the impact of the higher mortgage rates.
There were 75,140 sales reported through TRREB's MLS System in 2022 down 38.2% compared to the 2021 record of 121,639. The average selling price for 2022 was $1,189,850 up 8.6% compared to $1,095,333 in 2021. This price growth was due to a strong start to the year.
As we compare December 2022 with December of last year the adjustments in our market have become more evident. Sales volume is down just over 48% with active listings up 169%. With sales down and the supply of available homes up, downward pressure on pricing has begun to set in. Prices are down 9.2% this past December compared to December 2021.
With the jump in the supply of all available home types the Months of Inventory number still remains in the seller’s market territory. The supply of available homes for sale is still considered low which is assisting in the easing of prices; hence we are not seeing substantial price declines.
Condominium pricing remains flat even with the volume of sales down over 50%. Condominiums still remain an affordable way to enter the residential real estate market, with borrowing rates on the rise and the average price of freehold properties slowly moderating, condos remain in demand amongst first-time buyers and investors.
New Home Construction wrapped up the year with fewer products entering the market and with a lower volume of sales. Investors continued to sit on the sidelines and are waiting for borrowing costs to show some consistency before jumping into the market. Construction costs still remain expensive and with the cost of borrowing going up, developers are unable to make any substantial adjustments to their pricing models. However, developers have come up with some interesting promotions to attract purchasers, from cash back on closing to rental guarantees, developers are finding ways to sell units and keep buyers interested.
That’s all for today’s podcast. Thanks for your attention. It is very much appreciated. If you want some clarity on the residential and/or commercial/industrial micro markets, or If you have any interest in the pre-construction buying process, don’t forget to follow and/or DM me on LinkedIn, Instagram, Twitter, and my Facebook Business Page. I post real-time stats on these channels that you don't want to miss.
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Email: NBock@RoyalLePage.ca
Website: https://nico.royallepage.ca/
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