MARKET STATISTICS | DECEMBER 2022
Wednesday Jan 04th, 2023
LATEST & PREVIOUS MONTHS REAL ESTATE MARKET REPORTS:: https://fuadhomes.com/market-analysis
Average Prices of Detached Homes in December in Comparison to December of 2021:
- Toronto: -6.94% at $1,57M
- Vaughan: +6.54% at $2,10M
- Richmond Hill: -7.95% at $1,87M
- Mississauga: -18.57% at $1,48M
- Markham: -6.57% at $1,79M
- Newmarket: -8.53% at $1,33M
- Aurora: -15.20% at $1,41M
- Bradford: -0.59% at $1,26M
- Milton: -11.40% at $1,39M
- Stoufville: -37.92% at $1,39M
- Innisfil: -38.95% at $740,000
- Alliston: -30.68% at $796,000
- Burlington: -14.06% at $1,40M
- East Gwillimbury: -6.81% at $1,48M
- Barrie: -13.45% at $825,000
Throughout 2022, Toronto’s real estate market felt the ripple effects of continued demand, historic sales prices, low inventory, sky-high rents and high borrowing rates. Looking back at the last couple of years, we see that buyers' migration to small towns and rural areas was undoubtedly at play mainly due to remote-and-hybrid work settings factor. In 2021, many employees were provided with permanent remote work. This allowed buyers to separate themselves from city centers or inner suburbs and migrate to farther areas. Zoom towns became the boom towns through to a March of 2022.
As per CREA (Canadian Real Estate Association), a benchmark price of a home in Ontario, which combines sale prices of condominiums, attached and detached homes, peaked at $1.08 million in March of 2022. It was a staggering 64 percent increase in just 2 years. Since then prices fell by nearly 20 percent. While some could argue this was a major drop, it only brought prices back to the level they were in September of 2021. Will it go even lower? With the number of homes bought and sold monthly nowadays, it is lower than it's been per capita since the mid-1990s.
In fact, we are seeing home prices slightly increase in December in comparison to November all across GTA and surrounding areas. As of today, we've got more affordable home prices than we've seen in the last couple of years. On the other hand, rising interest rates are affecting buyers' ability to qualify for the mortgage amount they need. In my opinion, and of course if qualified, one should rather purchase a property today at a cheaper price with a higher interest rate and wait for rates to go down while real estate prices go up in the future. Moreover, Canada with its immigration policies stand out from the rest of the world, more people are coming and they all need a place to live.
There is no question that housing affordability has shut out first-time buyers with the rise in interest rates and home prices. Potential first-time buyers also face a rise in rental costs making it challenging to save for a down payment.
As the market settles, so will the record-breaking appreciation homeowners have been spoiled with. Although this will feel like a pull-back or a loss in value, when really it is just normalizing and will provide opportunities for buyers to make more logical choices when making offers on homes.
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Stay healthy, happy and well,