The Toronto Regional Real Estate Board’s February 2023 Market Watch report paints a mixed picture of the Greater Toronto Area’s housing market. Despite an increase in the number of home sales compared to the same period last year, there has been a drop in GTA home sales and listings. The limited supply of homes, coupled with strong demand, resulted in bidding wars and higher home prices. The report also notes that the average selling price of homes in the GTA increased, with detached homes and townhouses experiencing the highest price growth.
However, the report does offer a glimmer of hope for home buyers, as new listings increased compared to the previous month. This could potentially indicate a more balanced market in the future. Still, the drop in new listings compared to last year could lead to renewed price growth in some market segments.
In addition to the residential market, the report also highlights declines in activity in the commercial and condominium rental markets. Overall, the February 2023 Market Watch report shows that the GTA housing market remains highly competitive, with limited supply driving up prices.
The Greater Toronto Area (GTA) saw a substantial decline in February sales compared to the pre-rate hike levels of early 2022. The number of new listings also dropped significantly year-over-year. The average selling price and MLS HPI continued to level off after trending lower through the spring and summer of last year. The average selling price for February 2023 was $1,095,617, down 17.9% compared to February 2022. The share of home purchases below one million dollars is up substantially compared to this time last year.
The number of new listings continued to drop year-over-year in the GTA, and this increased demand will eventually lead to renewed price growth in many segments of the market, especially those catering to first-time buyers facing increased rental costs.
The Greater Toronto Area (GTA) saw a substantial drop in home sales and new listings in February 2023, down 47% and 40.9%, respectively, compared to February 2022, the last full month before the Bank of Canada raised interest rates. The decline in sales was attributed to the rise in borrowing costs, but the drop in the number of new listings resulted in the average selling price of CAD1,095,617 leveling off after trending lower in 2022.
Despite the decline in prices, the share of home purchases below CAD1m increased significantly compared to the same period last year. The limited supply of listings may lead to increased competition between buyers and renewed price growth in some segments of the market. The MLS Home Price Index Composite Benchmark fell year-over-year by a similar rate of 17.7%, but rose on a monthly basis.
In February 2023, sales in the City of Toronto decreased by 45.9% YoY, while the average selling price was CAD1,071,043, a YoY decrease of 11.3%. The share of sales below CAD1m was 57% in February 2023, compared to 38% a year earlier.
According to the report, the Board’s MLS System recorded 7,301 home sales, indicating a 9.3% rise compared to February 2022. The average selling price for all home types in the TRREB market area also increased by 22.5% compared to the same period last year, reaching $1,183,418. Although new listings increased by 4.5% year-over-year, active listings were down by 15.7% compared to February 2022. Overall, the housing market in Toronto is highly competitive, with strong demand and limited inventory contributing to price growth.
The residential real estate market has seen a significant decline in sales, with a -47% year-over-year drop and a -8.5% seasonally adjusted drop compared to the previous month. The average selling price also saw a -17.9% year-over-year drop and a -0.7% seasonally adjusted drop compared to the previous month. There was also a -40.9% year-over-year drop in total new listings, and the sales-to-new listings ratio dropped by -7% compared to last year.
The property and listing days on the market have increased dramatically compared to last year, with a 200% and 144.4% year-over-year increase, respectively. The report also includes information about seasonal adjustments and the Home Price Index (HPI).
The commercial stats report shows a decrease in all leasing and sales activity year-over-year. All leasing activity decreased by 7% compared to last year, while all sales activity decreased by 47.9% compared to last year. These charts summarize total industrial, commercial/retail,
The average industrial lease rate increased by 31.3% compared to last year, while the average commercial/retail lease rate decreased by 13.2% compared to last year. The average office lease rate increased by 9.8% compared to last year.
The total condo apartment sales have decreased by 54.1% compared to the previous year, and the average selling price has remained the same as the previous year. The Total New Listings decreased by 14.3% compared to last year, the Sales-to-New Listings Ratio decreased by 41% compared to last year and Days on Market increased by 50% compared to last year.
Condominium Rental Stats
Total Apartment Rentals Year-Over-Year decreased by 19.9% compared to last year.
Average 1-Bdrm. Apt. Rent Year-Over-Year increased by 19% compared to last year.
Total New Listings Year-Over-Year decreased by 11.8% compared to last year.
In a nutshell, the Toronto Regional Real Estate Board’s Market Watch report for February 2023 shows that the housing market in the Greater Toronto Area remains highly competitive, with strong demand and limited supply leading to bidding wars and higher home prices. Although new listings have increased compared to the previous month, the number of sales and new listings has dropped significantly compared to February 2022, likely due to the rise in borrowing costs.
Both the commercial and condominium rental markets have experienced a decrease in activity. Going forward, it is crucial for policymakers and stakeholders to prioritize increasing housing supply to meet the rising demand and tackle affordability issues. The goal should be to achieve a more balanced market that offers homeownership opportunities to everyone, particularly first-time buyers who are struggling with rising rental costs.
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