2022 was a year when all of the bubble-popping-predicters finally got it right….just took about 15-20 years for them to be “right” with their annual prediction. No one could have seen what occurred during the pandemic: property sales halted during lockdowns, freehold homes shot out of a canon after lockdowns, condos took longer to recover, then condos took off. Money was cheap. And people took advantage of that. What’s worth noting about human psychology is that when the times are good, we predict even better times ahead and spend accordingly. As with all markets, there are corrections. There are larger cycles at work; we cannot predict the timing or length of these cycles, but we know they will continue. We do suspect that Toronto may have found a value floor – we are in danger of predicting here! We are seeing more buyers compete for homes while the number of listings remains at roughly half what we have become accustomed to. We do suspect that Toronto’s condo and house values will be relatively flat this year; at the very least, we don’t think we will see an upward trend in values in 2023.
Please do not read the media headlines. Many pundits predict that Toronto’s real estate market will go further down in value (and many would-be buyers hope for the same.) But keep in mind, the drop in values in February reversed the increase in values we saw in the last year or two. This is not catastrophic. Most owners bought at lower values than what we see today – see, it’s all about perspective here. Homeowners will do whatever they can to pay their mortgages; after all, they have seen roughly a $900K increase in detached houses in 10 years. The short-term pains will pave the way to a brighter future.
We wish you and your family a happy, healthy, and prosperous 2023!
Toronto Real Estate Market Report – December 2022
There were only 520 sales, that’s it! We have never felt such a quiet marketplace. Very few listings were coming to market, so there wasn’t possible to sell much. Keep in mind that with so few trades, the values can be skewed with more lower-priced condos and houses versus higher-priced homes – our overall annual markers will provide a better sense of value increase, which you can reach out to us here to discuss.
Detached Home Values
There were minuscule (79) sales in central Toronto in December 2022. The average home sold for $2,408,529, up 11% since December 2021. The average home was on the market for 34 days.
Semi-Detached & Townhouse Values
There were 67 sales in central Toronto in December 2021. The average home sold for $1,274,359, down 17% since December 2021. The average home was on the market for a relatively short time compared to the TRREB days-on-market average of 21 days.
➤ Check out our top reads for anyone thinking about living in Toronto:
- Why Parents Should Invest In Toronto Condos For Their Children
- This Is the Year For Buyers To Buy In Toronto
- Selling A Home In Toronto
Toronto Condo Values
There were 374 condo sales—the average central Toronto condo sold for $826,666, down 1% from December 20211. The average condo was on the market for 23 days – condos are beginning to sit for longer as demand has cooled off in recent months. Note that the correction has not impacted Toronto condos as much as it has affected the freehold housing market.
Contact us here and read through our blogs to learn more about Toronto real estate.
Not the Toronto real estate market report you were looking for? Here is our complete library for all reports, old and new.
