March 6, 2023
February-2023 Housing Report Review
Toronto Region Real Estate Board (TRREB) has released its February-2023 housing market report, here is a quick review of the report for your benefit.
It seems like the market is still struggling, with a decrease in the number of residential properties exchanged ownership compared to last year. However, there is some good news with an uptick in the number of real estate transactions compared to January-2023.
Almost half the number of residential properties exchanged ownership, (-47%), in February this year as compared with the same month in 2022.
But there is light at the end of the tunnel as we saw an uptick in the number of real estate transactions, (+8.5%), in February compared to January this year.
It is good news for the Buyers to see the average selling price continuing to decline, with a significant drop compared to last year. This may be due to sellers holding onto their properties, as seen by the decline in new listings compared to last year.
The Average Selling price continues southward, seeing a significant drop of -17.9% while comparing with last February-2022 and -0.7% compared with January-2023.
It looks like the Sellers are still holding on to the properties as we saw a -40.9% decline in the new listings compared with last year in the same month.
The increase in the number of days a property remained in the market compared to last year is a significant contrast, which indicates that properties are not selling as quickly as before.
Even though new listings came into the market but not all properties were sold as we saw a -7% decrease in the Sales-to-New listings ratio.
A huge contrast and shifting of gears was seen when considering how long the properties remained in the market in February-2023. It saw a whopping +200% increase in the number of days a property remained in the market when compared with last year of the same month.
On the condominium apartment side, although sales were down by more than half, the average selling price remained unchanged. However, the number of apartments sold compared to new listings saw a significant decrease, and the apartments remained longer in the market.
When comparing with the Q4-2021, although Condominium Apartment Sales were down more than half, -54.1%, the Average Selling price remained unchanged at $710,246.
Total new listings of Condos entering the market also saw a decline of -14.3%, compared with Q4 of 2022 with Q4 of 2021.
In Q4, there were far fewer apartments sold compared to new listings, which is a -41% decrease, compared to Q4 of 2021. The apartments remained 50% more days in the market in Q4.
The decline in rental apartment transactions and the increase in rent for one-bedroom apartments is worrying for renters. This may be due to the decrease in available apartments for rent in the market.
The number of Rental Apartment transactions saw a significant decline of -19.9% when comparing the Q4s of 2022 and 2021.
A +19% increase in rent of one-bedroom apartments was worrisome for the renters, seen in Q4. This increase could be the result of a decrease (-11.8%) in the number of available apartments for rent in the market in Q4.
On the commercial side, there was a decline in leasing and sales activity, except for industrial and office leasing, which saw an increase. However, the overall average for commercial leasing saw a decrease.
On the Commercial side, year-over-year leasing activity saw a -7% decline in the month of February-2023.
Commercial Sales saw a bigger drop of -47.9%, compared to last February.
On the contrary, Industrial and Office leasing saw an increase of 31.3% and 9.8%, respectively. But when combined the average saw a -13.2% decrease.
Overall, the market seems to be still struggling, and it will be interesting to see how it progresses in the coming months.
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