MARKET COMMENTARY SEPTEMBER 2022
The Toronto Regional Real Estate Board (TRREB) has released the housing figures for September. With 5,038 sales reported on the local MLS, deals were down 44.1% year-over-year and 10.5% month-over-month. This was the lowest number of unit sales for the month of September in 20 years.
New listings were down 16.7% year-over-year, and at 11,237 listings, represents the lowest number of new listings for a September since 2002. At month’s end, there were 13,534 active listings, representing a 2.69- month supply heading into October.
Despite the low number of sales, there has not been an influx of new listings to place downward pressure on prices. As such, for the second straight month, the average sale price for homes sold was on the rise, reaching $1,086,762.
The MLS Home Price Index (HPI) Composite Benchmark, which serves as a measure of annual inflation in the market, was up 4.25% from September 2021, but down from 8.85% in August. Monthly growth in the average sales price, versus a decline in the HPI, point to a greater share of more expensive homes being sold in September.
Looking at price by housing type, detached homes sold for an average of $1,369,186. This is a year-over-year decrease of 10.2%, and a month-over-month decrease of 0.8%. The average price for semi-detached homes was $1,043,120 (-6.5% / +4.5%), townhomes showed an average of $901,592 (-0.9% / +0.1%), and the average price of condos was $730,818 (+3.2% / +2.7%).
The average sale took place in 23 days on the market, up from 22 days in August, and at 98% of the listing price.
Buyers and sellers continue to demonstrate patience as they track price trends, interest rates, and inventory levels. However, it is important to remember that Toronto is very much a city of neighbourhoods, and much of the real estate activity is behaving in a hyper-local fashion.