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Toronto home prices dropped for March 2022, but still up by 18.5% from last year

Wednesday, April 13, 2022   /   by Sushma Khinvasara

Toronto home prices dropped for March 2022, but still up by 18.5% from last year

Prices for single family homes in Toronto has slightly dropped from February with average selling price at $1,286,136. However, it still up by 18.5% year over year from last year's $1,097,351. This latest data suggests that this could be the start of a shift in the housing market that has seen steep increase in prices due to historically low interest rates and desire for more space. That is not the case now, where we can notice a cooling down in the market with buyers being more cautious unlike the previous heat in the market as spring approaches. Whether single family home prices continue to decline for the rest of the year remains to be seen. What we know for sure is that condo prices are still going up.

Hiking interest rates

The shift in the market comes right after the interest rate increases that the Bank of Canada has initiated to combat the rising inflation. Last month, interest rate rose by 25 basis points and likely more will come to bring the inflation down from record-high 5.7 percent. This increase in borrowing cost is one reason why buyers decided to stay on the sidelines.

Closing the gap between sales and listings

The interest rate hikes have a profound effect to the real estate market, a result that of the Bank of Canada's efforts to tame inflation. The number of total sales dropped by almost 30% year-over-year, while the number of new listings dropped by almost 12%. After years of being in a tight market, we have finally seen a gradual balance between sales and listings.

Demand for homes won't be going away, with population growth expected to happen in the next few months. As how TREBB CEO John Di Michele said, the latest numbers should be a reminder of the importance of policies aimed at boosting housing supply, rather than "trying to suppress demand."

Let us take a look at the numbers presented by TRREB in their latest March 2022 statistical update for GTA.

Source: TRREB April 4, 2022

Residential Statistics

Year-over-year Total Residential Transactions
March 2021 - 15,628
March 2022 -10,955
1.png
There was a decrease of 29.9% in sales compared to last year. For March 2022 sales result over February 2022, sales also decreased by 18.6%.
February 2022 - 10,554
March 2022- 8,588
2.png
There was a decrease of 18.6% in sales compared the previous month.

The number of home sales in March 2022 decreased by 29.9% on a year-over-year basis, and also went down by 18.6% from last month.

The average selling price of homes has also seen an increase
March 2021 - $ 1,097,351
March 2022 -$ 1,299,894
3.png
There was an 18.5% increase in selling price compared to last year.

However, for the average selling price compared to the previous month, there was a decrease of 1% for the home prices.
February 2022 - $ 1,299,309
March 2022 -$ 1,286,136
4.png
There was a decrease of 1% in selling price compared the previous month.

Total New Listings added to the Market

March 2021 -22,747
March 2022- 20,038
5.png
There was a decrease of 11.9% in new listings in a year-over-year basis.

The March 2022 % Sales-to-New Listings Ratio of 55% decreased by 14% compared to 69% of March last year.

Condominium Sales Statistics

Year-over-year Total Condo Apartment Sales
Q4/20 - 6,462
Q4/21- 7,815
6.png
There was an increase of 20.9% in condo sales compared the previous year. There was also an increase in the average selling price for condos.
Q4/20 - $ 610,042
Q4/21- $ 710,087
7.png
There was an increase of 16.4% in average selling price compared the previous year.

Here is the summary of the listings of condominiums

Year-over-year Total New Listings
Q4/20 - 12,305
Q4/21- 8,758
 8.png

There was a huge drop of 28.8% in new listings compared the previous year.

Townhouse Sales

From March 12 to April 9, there were a total of 613 sales in townhouses, lower by 37% compared to previous year. There were 806 new listings, also down by 15%. For the average selling price, a 1 Bd Townhouse can cost $849,000 which is 15% higher compared to the same month of last year. While a 2 Bd Townhouse costs $1M, also an increase of 12% compared to the previous year.

The housing market data tells us that the market is cooling down. If you're a buyer, this might be the best decision for you to enter the market while it's down. Or if you're a seller, it might be a difficult time to go look for buyers who have decided being in a wait-and-see.

If you have any question about Toronto housing market or need help buying or selling your home, you can contact me at 647-834-9928 or send an email to sukhinvasara@gmail.com

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Century 21 Green Realty Inc. | Sushma Home Selling Team
Sushma Khinvasara, Sales Representative
6980 Maritz Dr, Unit 8
Mississauga, ON L5W 1Z3
647-834-9928

Information is provided exclusively for consumers’ personal use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Data is deemed reliable, but is not guaranteed accurate by the MLS®.
Information is provided exclusively for consumers’ personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Data is deemed reliable, but is not guaranteed accurate by the MLS®. Copyright 2022 Last Updated October 3, 2022
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