And just like that, the summer of 2022 has come to and end. Now that we are all shifting our focus away from cottaging, entertaining and relaxing to our jobs, homes, school, etc., we are likely going see another shift in the market.
Yesterday, we witnessed another rate increase by the Bank of Canada of .75 points, as global inflation continues to increase. Banks around the world continue to tighten up on their monetary policies. China is facing continued challenges as they face more COVID shutdowns due to numbers increasing since mid August (which will cause a ripple effect globally). The price of commodities have been unpredictable: wheat, lumber and oil have become less extreme while the price of natural gas has risen.
Next month we will have a better idea of how the Toronto real estate market (and surrounding areas) is effected by the interest rate increase, but for now, let’s check out the effect from the last hike by viewing Augusts real estate transactions!
Surprise surprise, inventory is up. The number of properties for sale in the GTA are above two months of inventory (this means if nothing else went on the market, it would take a little over two months to sell out). By the end of August, there were 13,305 listings (based on all types of homes) which is up 62% when compared August of 2021.
Across most sub markets, prices have remained fairly flat, however, the markets that appreciated the quickest are now experiencing a faster adjustment. For example, let’s look at Brampton, prices are down 4% compared to this time last year and the number of homes available for purchasing is up over 130%.
In the GTA, the number of transactions in August were down by 40%, while prices were slightly up just over 3% at $711,321, when compared to this time last year. Affordability is certainly playing a role at the moment with buyers looking to enter the real estate market. The average price of a detached house in the Greater Toronto Area is almost double ($1,379,700) that of the average condo.
We are seeing a shift in the development of new homes and condos in the GTA. Buyers and investors are able to purchase with a deposit of approximately 10% down over the first year to two years of the development process. A firm mortgage approval is not always required when the timeline is 4-5 years which is quite attractive to buyers! If you have any questions about this process or real estate in general, please do not hesitate to reach out! OK, let’s take a deeper look at the August numbers for the following locations: GTA, Toronto, Mississauga, Oakville, Brampton and Durham Region.
GTA Real Estate Market Stats
The GTA’s average sale price (all home types) was up by 14.1% in August 2022 to $1,225,582 (year to date) when compared to August 2021. Condo prices were up 3.3% to $711,321 (year to date) when compared to this time last year.
Toronto Real Estate Market Stats
Toronto’s average sale price (all home types) was up by 11.8% in August 2022 to $1,165,794 (year to date) when compared to August 2021. Condo prices were up 2.2% to $736,940 (year to date) when compared to this time last year.
Mississauga Real Estate Market Stats
Mississauga’s average sale price (all home types) was up by 14.3% in August 2022 to $1,151,428 (year to date) when compared to August 2021. Condo prices were up 3.9% to $612,804 (year to date) when compared to this time last year.
Oakville Real Estate Market Stats
Oakville’s average sale price (all home types) was up by 14.1% in August 2022 to $1,670,669 (year to date) when compared to August 2021. Condo prices were up 21% to $1,011,520 (year to date) when compared to this time last year.
Brampton Real Estate Market Stats
Brampton’s average sale price (all home types) was up by 20% in August 2022 to $1,215,589 (year to date) when compared to August 2021. Condo prices were up 8.3% to $559,274 (year to date) when compared to this time last year.
Durham Region Real Estate Market Stats
Durham Region’s average sale price (all home types) was up by 17.6% in July 2022 to $1,061,986 (year to date) when compared to August 2021. Condo prices were up 10.4% to $552,448 (year to date) when compared to this time last year.
If you would like further statistics on a different region or neighbourhoods, please do not hesitate to reach out via phone, email or website form! Contact details below:
Danielle Demerino
ddemerino@royallepage.ca
416-728-5401
Brittany Huggins
bhuggins@royallepage.ca
647-863-7234
