Condo Market Report - November 2022
Sales for October on TRREB matched those of September and August. When you consider the normal seasonality of the market, our guess is that we have reached the bottom of the sales cycle. This represents a 49% drop in sales compared to the same month in 2021.
Prices are a different matter. All property types have given back all the gains made earlier in the year. We are back to 2020 prices. But to determine which markets are most susceptible to further price decreases you should look at ‘new’ listings versus sales. For the overall market new listings are down 12% from October of last year. (It is true that ‘active’ listings are higher than a year ago but many of these properties are with sellers who will not reduce their price or are in need of upgrades). In today’s market, buyers are only interested in newly renovated properties. Fixer Uppers are out of favour.
Anything below 40% is a buyer’s market. A balanced market is 40-60%. The numbers suggest we can probably expect a 1-2% drop in prices over the winter. Downtown condos are the most susceptible market due to new condo projects sold in previous years now coming into the resale market.
OCTOBER SALES-TO-NEW LISTINGS RATIO BY AREA AND PROPERTY TYPE
AFFORDABLE HOUSING IN TORONTO
This is the most popular phrase being used by politicians at all levels of Government. But they don’t know how to define it and how to build it. The answer is not more rental housing. The Toronto Housing Authority cannot maintain even what it currently owns. The answer is through Co-Operative housing projects. But that is a topic for another day.
Instead, we checked to see if there were any sales under $500,00 in the Downtown Core of Toronto. From September 1 to October 31, we found 48 sales. The average sale price was $459,356. The lowest was $335,000. These units are spread over six areas.
TORONTO SALES UNDER $500,000 (September-October 2022)
The October rental market was down slightly from September. Downtown/Humber Bay recorded 1389 units leased with another 1566 units available for lease. Rents stabilised in this period as well. Leases were going for 100% of list price.