GTA home sales in September down 44% from last year, new listings lowest in 20 years
Posted October 5, 2022 8:09 am.
Last Updated October 5, 2022 11:55 am.
The Toronto Regional Real Estate Board (TRREB) says home sales in September fell 44 per cent compared to last year, as new listings fell to the lowest level the month has seen in 20 years.
In its update on Wednesday, TRREB said 5,038 homes were sold across the GTA in the month, compared to 9,010 in September of 2021.
New listings were also down by 16.7 per cent from last year to 11,237.
“This was the lowest number of new listings reported for the month of September since 2002. This is especially troublesome given that the stock of homes in the GTA increased markedly over the last 20 years,” TRREB said.
The average price for a home also dropped 4.3 per cent to $1,086,762, the lowest since October of last year, and down from 17 per cent from the spring peak.
“Hovering just below $1.1 million, the average selling price may have found some support during the last couple months of summer. With new listings down quite substantially year-over-year and well-below historic norms, some home buyers are quite possibly experiencing tighter market conditions in some GTA neighbourhoods,” said TRREB Chief Market Analyst Jason Mercer.
Click here to read the full TRREB report.
This follows five interest rate hikes from the Bank of Canada since March. Economists expected the overnight lending late, which currently sits at 3.25 per cent, to climb to four per cent in the months ahead. The central bank is set to make its next rate announcement on Oct. 26.
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As the municipal election approaches later, the latest poll by Ipsos for TRREB suggests that the lack of housing supply is a key issue in the GTA.
The poll found that 71 per cent of GTA residents feel that municipalities should focus on increasing the supply of homes for sale and rent, rather than trying to reduce demand for housing.
“We must ensure that the temporary dip in housing demand is not allowed to mask the critical shortage of homes available for sale in the GTA,” said TRREB President Kevin Crigger.
“Municipal council decisions have a direct impact on housing affordability, in terms of the protracted development approval processes, high development fees and other related policies that preclude timely housing development.”
With files from The Canadian Press
