GTA Housing Market: Decrease in Sales, Increase in Prices and Rent in 2022″
The Greater Toronto Area (GTA) housing market saw a decrease in home sales and listings and an increase in selling price and rent in 2022. Higher interest rates from the Bank of Canada and a lack of homes on the market made it harder for people to afford to buy. The number of home sales in the GTA in 2022 was 75,140, a 38.2% decrease from the record number of sales in 2021, and there were 152,873 new listings in 2022, an 8.2% decrease from the number of new listings in 2021.
The average selling price for homes in the GTA in 2022 was $1,189,850, an 8.6% increase from the previous year. In December 2022, there were 3,117 sales in the GTA, a 48.2% decrease from December 2021, and the average selling price was $1,051,216, a 9.2% decrease from the previous year. The rental market also saw tighter conditions with double-digit average rent increases.
Rental Market Report
The Toronto Regional Real Estate Board (TRREB) reported 13,366 condo apartment rental transactions in the third quarter of 2022. This was 17.3% less than in the third quarter of 2021. However, the number of rental units listed was down by a greater annual rate of 25.6%, making it more difficult for renters to find a unit.
The ownership market was hurt by immigration, short-term migration, and higher borrowing costs, all of which kept the demand for rental housing high in the Greater Toronto Area (GTA). The average one-bedroom condominium apartment rent in Q3 2022 was $2,481, a 20.4% increase from the same period in 2021, and the average two-bedroom apartment rent was $3,184, a 14.5% increase. There is a need for additional purpose-built rental stock due to the tight market conditions and high average rent growth.
Condo Market Report
The Toronto Regional Real Estate Board (TRREB) said that there were 4,177 condo apartment sales in the Greater Toronto Area (GTA) in Q3 2022. This was 46% less than in Q3 2021. The number of new listings was also down by 16% to 10,258. The average selling price for condominium apartments in Q3 2022 was $720,132, a 4.5% increase from the average selling price of $689,230 in Q3 2021.
In the city of Toronto, the average selling price was $749,375, a 3.3% increase. Higher borrowing costs made it harder for first-time buyers to afford homes, so they may have turned to the rental market in the short- to medium-term to meet their housing needs. This caused sales to go down and prices to go up. The decrease in listings may provide support for condo prices in the future.
Commercial Realty Watch
In Q3 2022, the Toronto Regional Real Estate Board (TRREB) reported 5,109,603 square feet of leased space in the industrial, commercial/retail, and office markets, which is 1% less than in Q3 2021. The average industrial lease rate for Q3 2022 was $12.39 per square foot, an increase from $12.01 in Q3 2021.
The average commercial/retail lease rate was $21.97 per square foot, a decrease from $26.63 in Q3 2021. The average office lease rate was $18.17 per square foot, a slight decrease from the previous year.
Total commercial sales in Q3 2022 were down to 228, with 92 in the industrial sector, 89 in the commercial/retail sector, and 47 in the office sector. The decrease in sales and changes in lease rates may be due to the impact of COVID-19 on the commercial real estate industry.
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