Le Lézard
Classified in: Business
Subject: MISCELLANEOUS

Interest Rate Hikes Drive Down Home Sales and New Listings in November


TORONTO, Dec. 06, 2022 (GLOBE NEWSWIRE) -- Homeownership market activity in November continued to be influenced by the impact of higher borrowing costs on affordability. Sales were down markedly compared to the same period last year, following the trend that unfolded since the commencement of interest rate hikes in the spring. New listings were also down substantially from last year, and at a very low level historically. The fact that the supply of homes for sale has remained low, has supported average selling prices at the $1.08 to $1.09 million mark since August.

Greater Toronto Area (GTA) REALTORS® reported 4,544 sales through TRREB's MLS® System in November 2022 ? down 49 per cent compared to November 2021, but remaining at a similar level to October especially after considering the recurring seasonal downward trend in the fall. New listings, at 8,880, were down on both a year-over-year basis and month-over-month basis.

"Increased borrowing costs represent a short-term shock to the housing market. Over the medium- to long-term, the demand for ownership housing will pick up strongly. This is because a huge share of record immigration will be pointed at the GTA and the Greater Golden Horseshoe (GGH) in the coming years, and all of these people will require a place to live, with the majority looking to buy. The long-term problem for policymakers will not be inflation and borrowing costs, but rather ensuring we have enough housing to accommodate population growth," said TRREB President Kevin Crigger.

"We have seen a lot of progress this year on the housing supply and related governance files such as the More Homes Built Faster Act. This is obviously good news. However, we need these new policies to turn into results over the next year. Otherwise, the current market lull will soon be behind us, population growth will be accelerating, and we will have done nothing to account for our growing housing need. The result would be enhanced unaffordability and reduced economic competitiveness," said TRREB CEO John DiMichele.

The MLS® Home Price Index Composite Benchmark was down by 5.5 per cent year-over-year in November 2022. The average selling price for all home types combined was down by 7.2 per cent year-over-year. Annual price declines continued to be greater for more expensive market segments, including detached and semi-detached houses.

"Selling prices declined from the early year peak as market conditions became more balanced and homebuyers have sought to mitigate the impact of higher borrowing costs. With that being said, the marked downward price trend experienced in the spring has come to an end. Selling prices have flatlined alongside average monthly mortgage payments since the summer," said TRREB Chief Market Analyst Jason Mercer.

Summary of TRREB MLS® System Sales and Average Price November 1?30, 2022
 20222021
 SalesAverage PriceNew
Listings
SalesAverage PriceNew
Listings
City of Toronto
("416")
1,7981,050,7883,5623,5761,096,8754,253
Rest of GTA
("905")
2,7461,098,1275,3185,4031,206,0415,791
GTA4,5441,079,3958,8808,9791,162,56410,044
       


TRREB MLS® System Sales & Average Price by Home Type November 1?30, 2022
 SalesAverage Price
 416905Total416905Total
Detached5421,5142,0561,560,5481,329,1651,390,162
Yr./Yr. %
Change
-40.6%-48.2%-46.4%-13.8%-10.9%-11.3%
Semi-Detached1692173861,187,016924,0801,039,200
Yr./Yr. %
Change
-40.3%-53.8%-48.7%-17.1%-13.7%-13.9%
Townhouse178596774995,074872,014900,314
Yr./Yr. %
Change
-53.3%-44.0%-46.4%1.4%-8.7%-6.4%
Condo
Apartment
8993901,289734,797648,332708,636
Yr./Yr. %
Change
-54.5%-55.9%-54.9%-1.5%0.3%-0.9%

November 2022 Year-Over-Year Per Cent Change in the MLS® HPI
 Composite
(All Types)
Single-
Family
Detached
Single-Family AttachedTownhouseApartment
TRREB Total-5.49%-7.73%-6.81%-1.42%2.88%
Halton Region-11.18%-12.49%-12.63%-7.67%1.14%
Peel Region-5.08%-7.13%-7.02%0.43%6.66%
City of Toronto-4.25%-7.94%-7.34%1.78%2.05%
York Region-1.57%-2.99%-1.40%-0.76%4.62%
Durham Region-8.57%-9.03%-9.56%-2.93%2.06%
Orangeville-4.04%-4.97%-4.97%2.84%13.47%
South Simcoe
County1

-9.17%-10.08%-5.48%-1.15%5.00%
Source:Toronto Regional Real Estate Board
1South Simcoe includes Adjala-Tosorontio, Bradford West Gwillimbury, Essa, Innisfil and New Tecumseth
Please note the methodology used to calculate MLS® HPI has been changed. For more information, click HERE. 
  


Year-to-Date Summary of TRREB MLS® System Sales and Average Price November 2022
 20222021
 SalesAverage
Price
New
Listings
SalesAverage PriceNew Listings
City of Toronto
("416")
26,6161,145,93353,93741,1011,058,53961,097
Rest of GTA ("905")45,4421,225,23894,85974,5251,110,582100,326
GTA72,0581,195,945148,796115,6261,092,082161,423
       


YTD TRREB MLS® System Sales & Average Price by Home Type November 2022
 SalesAverage Price
 416905Total416905Total
Detached7,36824,87232,2401,798,8811,479,1491,552,219
Yr./Yr. %
Change
-32.4%-39.9%-38.3%4.6%9.1%8.4%
Semi-Detached2,4844,1756,6591,374,1251,079,0801,189,140
Yr./Yr. %
Change
-33.8%-38.9%-37.1%5.9%13.6%10.8%
Townhouse2,6609,47412,1341,045,249982,379996,162
Yr./Yr. %
Change
-41.2%-38.6%-39.2%11.1%14.3%13.4%
Condo
Apartment
13,8986,46520,363784,526709,189760,608
Yr./Yr. %
Change
-35.9%-35.7%-35.8%10.1%16.8%12.0%

Source: Toronto Regional Real Estate Board

Seasonally Adjusted TRREB MLS® Sales and Average Price1 
     
 SalesMonth-over-Month %
Chg.
Average PriceMonth-over-Month %
Chg.
November '219,90611.2%$1,184,6042.2%
December '219,583-3.3%$1,212,4252.3%
January '229,105-5.0%$1,272,6155.0%
February '229,4664.0%$1,285,1751.0%
March '228,028-15.2%$1,252,487-2.5%
April '226,644-17.2%$1,203,902-3.9%
May '225,977-10.0%$1,169,407-2.9%
June '225,610-6.1%$1,136,085-2.8%
July '225,224-6.9%$1,109,125-2.4%
August '225,6838.8%$1,123,3061.3%
September '225,091-10.4%$1,098,106-2.2%
October '225,007-1.6%$1,098,0460.0%
November '224,886-2.4%$1,101,7300.3%

Source: Toronto Regional Real Estate Board; CREA Seasonal Adjustment. 1 Preliminary seasonal adjustment undertaken by the Canadian Real Estate Association (CREA).  Removing normal seasonal variations allows for more meaningful analysis of monthly changes and underlying trends.

READ THE FULL REPORT.

Media Inquiries:
Genevieve Grant, Manager, Public Affairs [email protected] 416-443-8159

The Toronto Regional Real Estate Board is Canada's largest real estate board with almost 70,000 residential and commercial professionals connecting people, property and communities.

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News published on 6 december 2022 at 05:00 and distributed by: