In many ways, the Toronto and area residential resale market reflected September’s results in October. Sales volumes were practically unchanged, further emphasizing how sluggish the market has become and they continued the string of historically low sales numbers for this time of the year.
In October, 4,646 residential properties were reported sold, almost 6 percent fewer than the 4,930 reported sales last year. Year-to-date, 56,367 homes have changed hands. Based on the current pace of...
The Toronto and Region residential resale marketplace is, to say the least, confusing. The numbers reported by the Toronto Regional Real Estate Board depict a market in the doldrums with sales volumes having declined for 4 consecutive months, reaching levels more consistent with sales volumes achieved more than two decades ago when the greater Toronto area had a population almost half of what it has today.
Although there is some seasonality in these numbers, August and now September’s performance...
There were no surprises in the residential resale data for the month of August. As forecast in last month’s Report, while the benchmark rate of the Bank of Canada remains at its lofty rate – it is currently 5.0 percent – and the average sale price for all properties sold, although declining, is still high, sales volumes will remain low. And that is what happened in August.
During the month of August, only 5,294 residential properties were reported sold. In July, 5,245 properties...
On a year-over-year basis, July’s residential resale market results were quite favourable. The 5,250 sales reported were almost 8 percent higher than the 4,870 properties reported sold last July. The average sale price for all properties sold came in at $1,118,374, a 4.2 percent improvement compared to the average sale price of $1,073,213 achieved in July last year. Even days-on-market improved by 10.5 percent, from 19 to 17 days this July.
However, by July 2022, the Bank of Canada had implemented...
June was the first month since January when both sales and average sale prices declined, as compared to the month before. June saw 7,481 reported residential resales as compared to almost 9,000 sales in May. The average sales price dropped moderately from $1,195,929 for the Greater Toronto Area as compared to the price of $1,182,120 in May.
Notwithstanding these declines, the market remains exceptionally strong, with demand continuing to outstrip supply. The decline can be attributed to a number of...
It is hard to believe that in a span of fifteen months the Toronto and region real estate resale market has gone from record breaking sales and house prices to a precipitous decline, not seen in decades, to a market resurrection in May. Although May did not match the dizzying highs of February and March of 2022, resale results were nothing short of impressive.
May marked the forth consecutive month of rising sales. What was particularly impressive was the increase in the number of reported sales compared...
As forecast in March’s Market Report, April’s residential resale market continued its upward trajectory for the third month in a row. Sales volumes increased by more than 9 percent compared to March and the average sale price, which also bounced for the third month in a row since January, increased by more than 3 percent compared to March.
This trajectory is unlikely to change in May. It would have been even steeper if not constrained by affordability and the alarming decline in supply....
As forecast March’s residential resale market continued its upward trajectory, constrained only by available supply and the lack of affordability driven by the high cost of mortgage financing and the requirement to stress-test borrowers. Stress testing means that buyers must qualify at 2 percent higher than the interest rate of the mortgage they are seeking. In March the five-year fixed-term mortgage interest rate was slightly below 5 percent. Buyers, therefore, must qualify at approximately...
As forecast in March’s Market Report, April’s residential resale market continued its upward trajectory for the third month in a row. Sales volumes increased by more than 9 percent compared to March and the average sale price, which also bounced for the third month in a row since January, increased by more than 3 percent compared to March.
This trajectory is unlikely to change in May. It would have been even steeper if not constrained by affordability and the alarming decline in supply....
There is no point in comparing February 2023 with February 2022. February 2022 was the apogee of the pandemic residential real estate market. The average sale price achieved last February, $1,334,544, remains, and will for some time, the all time monthly average sale price record. Interest rates were at an all time low, the Bank of Canada benchmark rate was a mere 0.25 percent and is now 4.50 percent. The pandemic had created a buying hysteria, which in conjunction with low mortgage interest rates,...
As forecast in December, the slumping resale market of 2022 continued into the first month of 2023. Compared to January 2022, sales of all property types declined by almost 45 percent. Due to the extraordinarily strong pandemic market early last year, on a year-over-year basis sales volumes will post substantial negative variances until at least April. By April 2022, increased borrowing costs had begun to slow the residential resale market with an unprecedented impact. Since March of last year, sales...
The Toronto and area residential resale market limped to the end of 2022, a continuation of the pattern that became clear and established as interest rates began to rise in March of this year. As the Bank of Canada continued its punishing benchmark rate hikes, both sales and average sale prices have been decimated. Once again, no surprises in December.
Here is what has happened to sales since the Bank of Canada commenced its rate hikes in March.
December’s sales results were more than 48 percent...
December 12, 2022
In November only 4,544 residential properties were reported sold for the greater Toronto area. This is the lowest number of monthly sales recorded in 2022 and almost 50 percent fewer than the 8,979 sales reported for the same month last year. It has been almost 15 years since the market has seen numbers as low as those produced in November.
Although the average sale price has declined substantially since the spring, in fact it has declined by almost 20 percent, it appears to...
For the fourth consecutive month the Toronto and area resale housing market produced declining sales and lower average sale prices. The housing market peaked in February for average sale prices, in March for monthly reported sales. In February the average sale price for the greater Toronto area came in at an incredible (and unsustainable) $1,334,000. Sales in March hit 10,881, which was not a record. The record for March sales was achieved in 2021 when an unbelievable 15,627 homes of all types were...
Not unexpectedly June produced a substantial negative variance when compared to the numbers that the Toronto and Region residential resale market produced in June of 2021. Rising mortgage interest rates have over the last three months caused sales to drop fairly precipitously, and although sales prices are off from their high of February of this year, they remain higher than average sale prices achieved last June.
In June 6,474 properties were reported sold, a 41 percent decline from the 11,053...
In the face of daunting obstacles, the Toronto and area residential resale market produced stellar results, albeit not the stratospheric results achieved during the same period last year. In the face of rising interest rates, the war in Ukraine and its global consequences, government legislation primarily directed against foreign buyers and investors, and a desperate lack of inventory, the Toronto and area market produced the third-best March and the second-best first quarter on...
It’s now official, the most expensive city in Canada, at least from a housing perspective, is Toronto. February’s resale market performance pushed Toronto prices to new records, breaking records achieved only last month in January.
In February the average sale price for all properties sold, including the sale of 2,772 condominium apartments, came in at an eye-popping $1,334,544, almost 28 percent higher than the $1,044,957 achieved last February, and more than 7 percent higher than the...
There were a few surprises and once again a number of new records established by the Toronto and area residential resale market in January.
First, and very noteworthy, was the average sale price for all properties reported sold. It came in at an eye-popping $1,242,793, surpassing the previous record of $1,163,210 achieved in November of last year. By contrast, last January the average sale price came in at only $966,068, a year-over-year increase of almost 30 percent. This is not supposed to happen...
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