7481 Woodbine Ave #203, Markham, ON L3R 2W1 (647) 806-8188
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In October 2022, property prices in the Greater Toronto Area remained generally constant as the Toronto housing market continued to react to increased interest rates. The average price of a property in the Greater Toronto Area (GTA) increased slightly month-over-month but remained below the average price of the previous year, while GTA home sales have declined dramatically.
The average price of a property sold in the Greater Toronto Area (GTA) rose to $1,089,428 in October 2022, an increase of 0.25 percent from the previous month’s average price of $1,086,762. This is the third consecutive month that the average price of a property in Toronto has climbed on a monthly basis, indicating that there has been some support for the city’s housing market after prices fell 18% since February 2022. However, this may be attributable to a decline in new listings that has constrained market supply.
Year-over-year, property prices in the Greater Toronto Area are down 6%. This continues the year-over-year declines seen last month, when property prices in the GTA were down 4% year over year for September 2022. In the previous eight months, the average GTA house sale price has decreased by $245,000 compared to February 2022, when it was $1,334,544. In comparison to the previous year, market activity has diminished dramatically. During the month of October 2022, there were 4,961 sales, a decrease of 49% compared to the 9,783 sales during the same month the previous year. This significant decline in Toronto house sales is 1.5% less than last month’s sales numbers.
The average price of a property sold in Toronto was $1,093,097 in October 2022, a 3% rise from the previous month’s average price of $1,061,876. However, this is a 3% decline year-over-year. This is consistent with the broader market trend, as the average house price in the GTA has decreased by 6% year-over-year. Other regions of the Greater Toronto Area have had variable development. The average house price in Mississauga for October 2022 was $987,356, down 1% year over year and down 4% month over month. The average house price in Brampton was $1,003,263 in October 2022, a decrease of 7.5% year over year and 0.4% month over month. Even though home prices in Brampton have dropped a lot in the past year, Brampton still has a higher average home price than Mississauga.
have dropped a lot in the past year, Brampton still has a higher average home price than Mississauga.
Oakville house prices declined 2% annually to $1,487,485, down 3% from the previous month, while Markham home prices rose 8% annually to $1,285,561, up 6% from the previous month.
Additionally, Vaughan house prices are down 8% annually to $1,251,465; Some regions of the GTA property market are seeing large yearly drops in average sold prices, while others are experiencing monthly price rises. The average price of a detached house in the Greater Toronto Area for the month of October 2022 was $1,372,438. This was 11% less than the same time last year. Compared to September 2022, when the average price of a detached house was $1,369,186, this is a 0.2% monthly rise. In February 2022, the average sales price of a detached house reached $1,797,203. This means that the prices of detached homes in the Greater Toronto Area have dropped by 24% in the last eight months, which is about $424,000.
The average price of semi-detached houses in the Greater Toronto Area was $1,079,393, a rise of 3.5% month-over-month but a decrease of 6% year-over-year. Since January 2021, August 2022 was the first time since January 2021 that the average price of semi-detached houses in the GTA fell below $1 million. Since then, the values of semi-detached homes have rebounded and stayed over $1 million. The average price of freehold townhomes was $1,023,934, a 6% decrease from the previous year. However, this pushes the price of freehold townhouses back over $1 million after dipping to $990,242 the previous month. The average price of condo townhomes was $802,969, a 2% yearly decline. The average condo price was $716,515—an increase of 2% year-over-year.
Moreover, the CMHC lowered its requirements for insured mortgages in 2021. This reverses the 2020 standard rise and reduces the needed credit score from 680 to 600. This modification also raises the GDS and TDS ratio restrictions from 35% and 42%, respectively, to 39% and 44%, respectively. But the Office of the Superintendent of Financial Institutions (OSFI) and the Department of Finance Canada raised the benchmark mortgage stress test rate from 4.79 percent to 5.25 percent in 2021 for both insured and uninsured borrowers, making it harder for marginal buyers to afford a home.
Since their lows in 2020, mortgage rates have climbed and are anticipated to rise more this year. The Bank of Canada raised interest rates for the first time on March 2, 2022, followed by a series of rapid increases that may continue until late in the year. As a result of Canada’s persistently high inflation rate, this will cause mortgage rates in Toronto to rise and home sales to drop.
7481 Woodbine Ave #203, Markham, ON L3R 2W1 (647) 806-8188