TRREB Releases 2022 Q3 Condo Market Statistics:
Despite economic challenges and the war in Ukraine, the average selling price for condo apartments was up year-over-year. The average selling price for condominium apartments in Q3 2022 was $720,132 – up 4.5 per cent compared to $689,230 reported for Q3 2021. In the City of Toronto, the average selling price was $749,375 – up 3.3 per cent compared to the same time period last year.
“The pace of condo price growth has moderated.... A shorter supply of condos will likely provide some support for prices in the months ahead,” said TRREB Chief Market Analyst Jason Mercer.
Q3 2022 condominium apartment sales were down by approximately 46 per cent compared to Q3 2021. The good news for Buyers is that market was more balanced in the third quarter compared to 2021.
“The condo market remains a very important segment in the Greater Toronto (GTA) housing market, both in terms of ownership and rental. The ownership side of the market has been slower, as some first-time buyers have been sidelined by higher borrowing costs and the hit on affordability....” said TRREB President Kevin Crigger.
There were 4,177 condo apartment sales reported through TRREB’s MLS® System in Q3 2022 compared to 7,795 in Q3 2021. This is a big decrease in sales activity year over year. It reflects the instability we are seeing in the Canadian economy and global economies, due in part to the war in Ukraine, which has had ripple effects on oil prices, affecting transportation costs and manufacturing costs. Food prices and inflation have increased post-pandemic and the Bank of Canada has responded by increasing interest rates for borrowers, which has increased mortgage rates considerably. So while prices might be attractive to Buyers, there are fewer Buyers in the market because lending power is decreased year over year.
The number of new listings was also down over the same period by 16 per cent to 10,258. New listings are not actual sales. They are properties which sellers tried to sell and then took off the market, for various reasons including not being able to get expected sales prices.
Source: Toronto Regional Real Estate Board (TRREB)