The Toronto Regional Real Estate Board (TRREB) has released the MLS sales data for January 2023. With 3100 home sales reported, transactions were down 34% from the 10-year average and 44.6% year-over-year.
Though new listings were down 3.7%, they decreased at a slower rate than sales, which has had a positive impact on housing supply. At month’s end, there were 9,299 Active Listings, a gain of 124.6% from a year earlier, and representing a 3-month supply heading into February.
The average sales price of $1,038,668 is a 16.4% decrease compared to last year. Annual average price declines were greater for the more expensive market segments, including detached and semi-detached houses. The MLS Home Price Index (HPI) Composite Benchmark, which serves as a more accurate measure of price trends, was down 14.2% (-10.2% in Toronto) from January 2022.
Here is an analysis of price by housing type: detached homes sold for an average of $1,341,848, a year-over-year decrease of 23%, and a month-over-month decrease of 3.1%. The average price for semi-detached homes was $1,019,668 (-22.3% / +1%), townhomes sold on average for $887,610 (-18% / +2.6%), and the average price of condos was $687,696 (-8.1% / -2.5%).
The average January sale took place in 29 Days on Market, up from 27 days in December, and at 98% of the listing price.
As we move from 2022 into 2023, the Greater Toronto Area (GTA) housing market has unfolded as expected. The number of January sales and the overall average selling price were similar to December 2022, but there has been a marked adjustment in activity compared to the near-record levels from a year ago.
Affordability issues created by a lack of housing supply have been exacerbated by sustained interest rate hikes. However, the Bank of Canada announcement that interest rate hikes are likely on hold should prompt some buyers to move off the sidelines. Record population growth and a tight labour market conditions will also continue to support housing demand.
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