01/06/2023
Greater Toronto Area Real Estate Market Proves its Resiliency in 2022, Prepares
for Future Impact of Demand for Housing
2022 In Review While the housing market in the Greater Toronto Area (GTA) experienced a shift in 2022, it also showed its resiliency in the face of rising interest rates. The average selling price last year in the GTA was $1,189,850, representing an 8.6% increase over the 2021 average of $1,095,333. The increase in average price growth is attributed to the strong start we saw in 2022. The pace of growth moderated from the spring of 2022 onwards.
As interest rates increased, home sales trended lower in the spring and summer of 2022. Transactions were down 38.2% compared to the record sales activity we saw in 2021, and home prices adjusted downward to accommodate the impact of higher interest rates. However, in August we saw home prices start to level off, and remain steady for the remainder of the year. Supply remained tight despite fewer transactions, and the lack of homes available for sale supported price stability and in some pockets of the GTA led to continued price increases, despite higher borrowing costs.
Lack of supply also impacted the rental market and tight rental market conditions caused rental rates to skyrocket in 2022, up 23.7% in the GTA compared to last year.
-COO Karen Yolevski 📝
