Toronto Home Price Come to 1.05 Million, Set up for Jan 2023 with more New Listings!
Toronto Home Price Come to 1.05Million in Dec 2022!
With the ringing of the New Year’s bell, in the first week of January 2023, the snow in Toronto slowly melted away, and the air was warm like spring coming early. The Christmas and New Year holidays are over for adults, and school kids are counting down the days back to school. In the first week of the year, we also began to hear more and more news about Canadian real estate:
- Foreigners’ house purchase ban comes into effect
- Vancouver begins mandatory 3-day cooling-off period for home sales
- Canada is still likely to raise interest rate one more time in January 2023
And The TREB also released December 2022 and full year data to announce a Start of New Year 2023! And No one will deny the year of 2022 is most special year:
- Home prices hit history record highs
- Inflation hits 40-year record high
- The interest rate has risen by 400 points from 25 basis points on the floor for 7 consecutive times, and it has increased by 16 times in the same year
2022 the whole year home transactions has fallen while the price has risen comparing with prior year, which is actually not bad:
- 2022 full-year residential sales of 75,140 units, down 38.2% from 2021 full-year sales of 121,639 units
- 2022 Full-year residential new listings totaled 152,873, down 8.2% from 166,600 in 2021
- 2022 Full year average residential home price is $1.19 million per unit, an increase of 8.6% from the average price of $1.09 million per unit in 2021
But the situation in the last month Dec 2022 is more representative of the current situation of Toronto real estate. Those who follow up market numbers know the higher price in first months pull up the whole year number! Rather than buying a home with 1.19million, buyers possibly can buy the same home at 1.05Million, here are December 2022 number:
- 3,117 residential sales in December 2022, down 48.2% from December 2021
- The new residential listings in December 2022 were 4,074, down 21.3% from in 2021
- The average home price in December 2022 is $1.05 million per unit, a decrease of 9.2% from the average price in Dec 2021
26 years of Toronto Real Estate Data Show both December and January probably have Low Sales but not New Listings!
Winter is considered to be the season of getting good deals and Dec data shows:
- The sales in December will drop by 30% on monthly basis, in 2022 the sales drop by 31% compared with November,
- December new listings are averagely down 50% from November, and new listings in December 2022 are down 54% from November;
- The home price in December is 2.6% lower on average than in November. The home price in December 2022 was 2.6% lower than November, which is exactly equal to the 26-year average.
26 year of Jan data shows: the sales are averagely 5% higher than prior December, while the new listing is twice that of the previous month, the average home price stays the same as December.
- Sales: January is usually 5% higher December. The biggest number 48% over previous month occurred in January 2022, and the minimum number -18% occurred in January 2018, which means sales decreased by 18% from Dec 2017.
- New Listing : January new listing was twice that of December on average. The highest occurred in January 2001, which was three times that of December. The lowest occurred in January 2018. The listing was 36% higher than previous month.
- Sales price: The transaction price in January is usually the same as that in December. Among the 26 years of data, 17 years have risen, with an average increase of 1.2%. The largest increase occurred in January 2017 at 5.2%, and the largest decline occurred in January 2008 down 5.6%