MARKET COMMENTARY AUGUST 2022
The housing data is in for August, and the Toronto Regional Real Estate Board (TRREB) is reporting 5627 sales on the regional MLS. Total transactions were down 34.2% when compared to the same time a year ago, but were up 14.6% month-over-month.
New listings were slightly down from the same time last year. At month’s end, there were 13,305 active listings, an annual gain of 62.3%, representing a 2.36- month supply heading into September. Months of inventory have decreased over the past two months, as sales have begun to represent a higher share of new listings. Should this trend continue, it would suggest increased support for the current price point in the coming months.
With that in mind, the average sales price for all homes sold was up 0.9% year-over-year to $1,079,500, even with the average sale price for July. The MLS Home Price Index (HPI) Composite Benchmark, which serves as a measure of annual inflation in the market, was up 8.9% from August 2021, but down from 12.9% in July. Monthly growth in the average price, versus a decline in the HPI, point to a greater share of more expensive homes being sold in August.
Looking at price by housing type, detached homes sold for an average of $1,379,700. This is a year-over decrease of 3.1% and a month-over-month increase of 1.3%. The average price for semi-detached homes was $998,490 (-3.4% / -7.4%), townhomes showed an average of $900,307 (+2.9% / -0.4%), and the average price of condos was $711,321 (+3.6% / -1.1%).
The average August sale took place in 22 days on the market, up from 19 days in July, and at 98% of the listing price, down from 99% in July.
Though housing activity picked up considerably compared to July, sales this past month were still at their lowest levels for the month of August since 2002. Both buyers and sellers are demonstrating patience as they track price trends, housing inventory and weigh their options going into the autumn market.