The housing market in the Greater Toronto Area (GTA) has seen a significant decrease in sales and new listings in November 2022, according to a report from the Toronto Real Estate Board (TRREB). The decrease is believed to be largely due to the impact of higher borrowing costs on affordability.

Despite the dip in market activity, TRREB President Kevin Crigger remains optimistic about the long-term prospects for the housing market in the GTA and Greater Golden Horseshoe (GGH) region. Crigger points to the significant amount of record immigration expected to the area in the coming years as a driving force behind the expected increase in demand for ownership housing.

However, Crigger and TRREB CEO John DiMichele both stressed the importance of addressing the issue of housing supply in order to accommodate population growth and avoid further unaffordability and reduced economic competitiveness. DiMichele noted that while progress has been made on the housing supply and governance front with the More Homes Built Faster Act, it will be crucial for these policies to turn into results in the coming year.

The MLS Home Price Index Composite Benchmark was down by 5.5% year-over-year in November 2022, and the average selling price for all home types was down by 7.2% year-over-year. Price declines were reportedly greater for more expensive market segments, including detached and semi-detached houses. TRREB Chief Market Analyst Jason Mercer noted that selling prices have flatlined along with average monthly mortgage payments since the summer.

Overall, the housing market in the GTA appears to be facing challenges due to higher borrowing costs and a decrease in sales and new listings. While the long-term outlook for the market is positive due to expected population growth, it will be important for policymakers to address the issue of housing supply in order to ensure the market remains healthy and affordable in the coming years.

Here are a few of the standouts from the release:

Sales in the housing market of the Greater Toronto Area in November 2022 were down 49% compared to November 2021.
New listings in the market in November 2022 were down on both a year-over-year basis and month-over-month basis.
The low supply of homes for sale in the market reportedly supported average selling prices, which were around $1.08 to $1.09 million.
The MLS Home Price Index Composite Benchmark was down by 5.5% year-over-year in November 2022.
The average selling price for all home types in the market was down by 7.2% year-over-year.
Price declines in the market were reportedly greater for more expensive market segments, including detached and semi-detached houses.
The decrease in market activity is believed to be largely due to the impact of higher borrowing costs on affordability.
TRREB President Kevin Crigger remains optimistic about the long-term prospects for the housing market in the GTA and Greater Golden Horseshoe region due to expected population growth.
TRREB CEO John DiMichele stressed the importance of addressing the issue of housing supply in order to accommodate population growth and avoid further unaffordability and reduced economic competitiveness.
TRREB Chief Market Analyst Jason Mercer noted that selling prices have flatlined along with average monthly mortgage payments since the summer.

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