Supply still a problem despite impact of higher mortgage rates, Canadian Business Journal

TRREB Calls on Local Election Candidates to Stay Focused on Addressing Housing Affordability

TORONTO, Oct. 05, 2022 (GLOBE NEWSWIRE) — The Greater Toronto Area (GTA) housing market continued its adjustment to higher borrowing costs in September 2022. Sales for the month reached 5,038, down 44.1% compared to September 2021. .

The number of new listings was 11,237, down 16.7% from the previous year. This was the lowest number of new listings reported in September since 2002. This is especially problematic given that GTA’s housing inventory has increased significantly over the past two decades.

TRREB recent poll by Ipsos Public Affairs¹ suggests that the general public agrees that the lack of housing supply is a major problem in the GTA. A poll found that 71% of residents in Toronto and the ‘905’ area combined said their local government would focus on increasing the supply of homes for sale and rent, rather than trying to reduce demand for housing. I think it should be poured.

“We must not allow a temporary dip in housing demand to mask a severe shortage of homes available for sale in the GTA. Tenants must ensure that they have adequate housing options for years to come.The City Council’s decision is the result of a lengthy development approval process, high development costs, and other related policies that hinder timely housing development. From that point of view, it has a direct impact on housing affordability,” said Kevin Kriger, president of TRREB.

“The elected legislature must also reconsider existing policies that prevent homeowners from putting their homes up for sale, including significant additional upfront costs like land transfer taxes. Potential new policies, such as energy audits, could introduce unnecessary interference and delays in the home sales process and discourage some homeowners from putting their homes up for sale.

“Energy audits should be voluntary. In a recent survey conducted by Ipsos Public Affairs for TRREB, 73% of Toronto citizens and 78% of ‘905’ residents support the idea. , if we continue to support policies that restrict new housing developments and existing housing listings, such as exclusive zoning, housing affordability will be significantly hampered in the long term, as well as future growth in the area.

The MLS® Home Price Index (HPI) Composite Benchmark rose 4.3% year-on-year. Over the same period, the average price fell 4.3% to $1,086,762. Average price increased compared to August 2022.

“With just under $1.1 million, average sales prices may have had some support in the final months of the summer. Some homebuyers are very likely experiencing tougher market conditions in some GTA districts as October generally represents the peak of the fall market, so It’s important to see where the monthly price trend is headed.

For more information on housing affordability issues affecting GTA residents, visit GiveMeOptions.ca.

Summary of TRRsEB MLS® System Sales and Average Price September 1-30, 2022
	2022			2021
	sale	average price	new list	sale	average price	new list
City of Toronto (“416”)	1,744	1,061,876	4,493	3,387	1,090,422	5,958
Rest of GTA (“905”)	3,294	1,099,938	6,744	5,623	1,161,895	7,536
GTA	5,038	1,086,762	11,237	9,010	1,135,027	13,494

September 1-30, 2022 TRREB MLS® System Sales and Average Price by Home Type
	sale			average price
	416	905	total	416	905	total
detached	497	1,837	2,334	1,585,589	1,310,639	1,369,186
year/year % change	-44.3%	-38.7%	-40.0%	-11.0%	-9.5%	-10.2%
Semi-detached	180	321	501	1,210,715	949,142	1,043,120
year/year % change	-44.4%	-35.4%	-39.0%	-7.3%	-4.2%	-6.5%
townhouse	171	659	830	943,922	890,608	901,592
year/year % change	-53.0%	-44.5%	-46.5%	1.3%	-1.4%	-0.9%
condominium	875	442	1,317	769,058	655,117	730,818
year/year % change	-51.0%	-49.2%	-50.4%	3.4%	3.3%	3.2%

September 2022 MLS® HPI YoY Percentage Change
	Composite (all types)	detached house	single family attached	townhouse	apartment
Total TRREB	4.25%	1.85%	3.55%	7.70%	13.31%
Halton area	0.03%	-0.75%	1.13%	1.22%	5.53%
peel area	5.30%	3.39%	3.78%	9.30%	17.57%
city ​​of toronto	5.21%	1.20%	1.79%	10.71%	12.52%
York region	6.74%	4.48%	7.86%	9.03%	17.72%
Durham area	1.76%	1.06%	1.41%	7.47%	15.12%
orange building	3.12%	0.87%	2.99%	13.15%	24.41%
South Simcoe County1	0.00%	-0.88%	3.20%	7.36%	19.58%
Source: Toronto Area Real Estate Commission 1South Simcoe includes Adjala-Tosorontio, Bradford West Gwillimbury, Essa, Innisfil and New Tecumseth.

Note that the methodology used to calculate the MLS® HPI has changed.Click for more information here.

Year-to-date summary of TRREB MLS® system sales and average price for September 2022
	2022			2021
	sale	average price	new list	sale	average price	new list
City of Toronto (“416”)	22,951	1,157,553	46,268	33,744	1,047,312	51,700
Rest of GTA (“905”)	39,687	1,245,007	83,234	63,160	1,096,182	87,930
GTA	62,638	1,212,963	129,502	96,904	1,079,164	139,630

YTD TRREB MLS® System Sales and Average Price by Home Type September 2022
	sale						average price
	416		905		total		416		905		total
detached	6,234		21,698		27,932		1,837,880		1,504,878		1,579,199
year/year % change	-30.2%		-38.5%		-36.8%		8.0%		12.8%		12.1%
Semi-detached	2,117		3,718		5,835		1,403,395		1,095,549		1,207,239
year/year % change	-31.8%		-36.5%		-34.8%		9.5%		17.4%		14.5%
townhouse	2,297		8,245		10,542		1,052,511		997,078		1,009,156
year/year % change	-38.2%		-37.4%		-37.5%		13.6%		17.9%		16.9%
condominium	12,128		5,633		17,761		791,186		716,562		767,519
year/year % change	-31.8%		-31.2%		-31.6%		12.1%		19.5%		14.1%

Source: Toronto Area Real Estate Commission

Seasonally adjusted TRREB MLS® sales and average prices1
	sale	Month-to-month basis % change		average price		Month-to-month basis % change
September 21	9,311	-1.1%		$1,140,007		2.0%
October 21	9,925	6.6%		$1,155,104		1.3%
November 21	9,335	-5.9%		$1,181,226		2.3%
December 2021	8,983	-3.8%		$1,210,375		2.5%
January 22	8,645	-3.8%		$1,272,097		5.1%
Feb ’22	9,163	6.0%		$1,285,129		1.0%
March 22	7,876	-14.0%		$1,252,680		-2.5%
April 22	6,631	-15.8%		$1,204,076		-3.9%
May 22	6,074	-8.4%		$1,172,093		-2.7%
June 22	5,780	-4.8%		$1,138,924		-2.8%
July 22	5,296	-8.4%		$1,107,613		-2.7%
August 22	5,885	11.1%		$1,130,463		2.1%
September 22	5,248	-10.8%		$1,099,668		-2.7%

Source: Toronto Area Real Estate Commission. CREA seasonal adjustment. 1 Interim seasonal adjustments performed by the Canadian Real Estate Association (CREA). By removing the usual seasonal variations, month-to-month changes and potential trends can be analyzed more meaningfully.

Read the full report.

____________________________
Note
¹ This Ipsos poll was commissioned by TRREB. Voting took place from 12th September to 27th September 2022 and was conducted online through Ipsos’ i-Say panel. A total of n=1002 respondents, n=515 for GTA 416 and n=486 for GTA 905. The margin of error for this sample size is +/- 3.5 percentage points.

Media inquiries:
Genevieve Grant, manager, public relations [email protected] 416-443-8159

The Toronto Regional Real Estate Commission is Canada’s largest real estate commission, with more than 68,000 residential and commercial professionals connecting people, properties and communities.

www.trreb.ca/

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