{"id":13768,"date":"2023-03-03T15:09:34","date_gmt":"2023-03-03T23:09:34","guid":{"rendered":"https:\/\/essential.construction\/news\/trreb-listings-down-47-in-february-while-average-prices-drop-17-9\/"},"modified":"2023-03-03T15:09:35","modified_gmt":"2023-03-03T23:09:35","slug":"trreb-listings-down-47-in-february-while-average-prices-drop-17-9","status":"publish","type":"post","link":"https:\/\/essential.construction\/news\/trreb-listings-down-47-in-february-while-average-prices-drop-17-9\/","title":{"rendered":"TRREB: Listings Down 47% in February While Average Prices Drop 17.9%"},"content":{"rendered":"

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The Toronto Regional Real Estate Board (TRREB) published their February, 2023 monthly report today, detailing a new set of findings based on the data collected through the city\u2019s Multiple Listings Service (MLS). The trends reported in the month show similar statistics to what we have seen over the last few months, as the historic slump continues to persist in both home sales and the average home prices in the GTA. What the report did offer, however, was a hint of optimism, with a number of indicators pointing towards an uptick in homebuying in the near future.\u00a0<\/p>\n

Beginning with a look at the struggling state of home sales in February, the MLS reported a total of 4,783 sales over the course of the year\u2019s shortest month. Comparing that figure to the total reported in February of 2022, a sharp decline has occurred, by a margin of 47% year-over-year.\u00a0<\/p>\n

Similarly, the rate of new listings entering the market has been another category that is experiencing stark declines based on year-over-year measurements. While it is important to recognize the potentially skewed nature of the data set in the context of steady interest rate hikes, the fact remains that less homes are being listed. The 8,367 new listings entering the MLS in February, 2023 represents a decline of 40.9% over the same month in 2022.<\/p>\n

Looking northwest to Toronto’s skyline from Harbourfront Centre, image by UrbanToronto Forum contributor Justin Ziadeh<\/span><\/p>\n

\u201cNew listings continued to drop year-over-year in the GTA,\u201d\u00a0 said TRREB Chief Market Analyst Jason Mercer. Despite this fact, however, Mercer noted that buying intentions are on the rise, and that will have a ripple effect. \u201cThis increased demand will run up against a constrained supply of listings and lead to increased competition between buyers,\u201d he said. \u201cThis will eventually lead to renewed price growth in many segments of the market, especially those catering to first-time buyers facing increased rental costs.\u201d<\/p>\n

Still, even as buy intention grows, the impact on prices hasn\u2019t delivered the expected results of increasing value. The average home price in February, 2023 was recorded at $1,095,617, which represents a 17.9% drop compared to February of 2022. What the report finds, however, is that this drop is not entirely related to declining value.\u00a0<\/p>\n

\u201cIt has been almost a year since the Bank of Canada started raising interest rates,\u201d said TRREB President Paul Baron. \u201cHome prices have dropped over the last year from the record peak in February 2022, mitigating the impact of higher borrowing costs.\u201d Interestingly, Baron explained how \u201cmany homebuyers have also decided to purchase a lower priced home to help offset higher borrowing costs,\u201d citing that \u201cthe share of home purchases below one million dollars is up substantially compared to this time last year.\u201d<\/p>\n

What this suggests is that homebuyers are making compromises on the value of homes they are purchasing, which is skewing the average prices towards lower margins. Another observation to consider is that the increasing competition and prices in the rental market will redirect a share of tenants into the purchasing market, leading to increased sales.\u00a0<\/p>\n

\u201cAs we move toward a June mayoral by-election in Toronto, housing supply will once again be front and centre in the policy debate,\u201d said TRREB Chief Executive Officer John DiMichele. \u201cNew and innovative solutions, including the City of Toronto\u2019s initiative to allow duplexes, triplexes and fourplexes in all neighbourhoods citywide, need to come to fruition if we are to achieve an adequate and diverse housing supply that will support record population growth in the years to come.\u201d\u00a0<\/p>\n

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UrbanToronto has a research service,\u00a0UrbanToronto Pro<\/a>, that provides comprehensive data on construction projects in the Greater Toronto Area\u2014from proposal through to completion. We also offer\u00a0Instant\u00a0Reports<\/a>, downloadable snapshots based on location, and a daily subscription newsletter,\u00a0New Development Insider<\/a>, that tracks projects from initial application.<\/p>\n<\/div>\n