Total January 2022 home sales, as reported by the TRREB MLS System, saw an 18.2% drop compared to January 2021. Year-to-date reported sales for January were 5,636, a 1,252 deficit from the past year.
Despite the substantial downturn of sales over 2021, it was still the second strongest number of sales ever reported for the first month of the year.
The significant 15.5% drop in new listings year-over-year contributed to the January market data. Only 7,797 new properties came on the market in January 2022, compared to 9,438 the previous year. By the end of January, there were only 4,140 active listings, the lowest in over 20 years.
These tight market conditions have further bolstered the average selling price of homes, now up 28.6% year-over-year with an average selling price of $1,242,793.
TRREB CEO John DiMichele sees the supply and demand for homes in 2022 for the Greater Toronto Market (GTA) as an extension of the closing of the 2021 market activity.
He has commented that the market supply will continue to rely on government policy and how it impacts real estate development. Furthermore, he has stated, “It will be very important for voters to understand exactly what parties and individuals vying for public office propose to do to alleviate the lack of inventory and housing choice in the GTA in the years to come.”
Condo Desirability Continues Despite Increasing Prices
Reported home sales in the Greater Toronto Area (GTA) TRREB MLS System continue to be heavily supported by condo and townhouse closed transactions. Of the 5,636 total sales for January 2022, attached property sales were 2,904 or over 50% of the sales activity.
In tandem with the year-over-year decline in the total sales, condo and townhouse closings were down an average of 19% over January 2021.
The resurgence of condominium demand experienced in 2021 is expected to continue into 2022. The majority of first-time buyers will continue to invest in condos in the Toronto “416” area code, where is housing is most affordable. In the GTA, attached housing and its price point are also destinations for many immigrant households. The recent history of appreciation will be attractive for all of these buyers.
Appreciation is evidenced by the year-over-year upward trend in the average selling price of attached housing. The average selling price for townhomes for January 2022 saw an increase of 34.8%. Condo sales in the GTA realized an appreciation of 24.5% over last January.
Condo supply continues to be a problem for all buyers as the demand for new housing developments continues into 2022.
This shortage is predicted to be compounded by a high number of homeowners in the City of Toronto not intending to list their properties in 2022.