The final monthly report of 2022 from the Toronto Regional Real Estate Board (TRREB) was published this morning, presenting statistics on the real estate trends of the month that generally reaffirm affordability issues that many Torontonians have been feeling first hand. With a set of data specific to December as well as some broader observations from a roller coaster of a year, here are the findings from the latest TRREB report. 

Much like what we saw in November’s report, the big story of December was a concerning one, with the number of home sales failing to climb above the historically low mark that has persisted throughout this slump. TREBB’s Multiple Listings Service (MLS) reported a total of 3,117 sales in December, which, compared to December of 2021, represents a decline by a troubling margin of 48.2%.

The number of new listings also experienced a relatively significant drop, made more dramatic by the urgent demand for new housing from a rapidly growing population. With 4,077 new listings made available in December, the market was short by 21.3% compared to last year’s December total of 5,177. 

Looking at where prices were at in December, the lower average value of homes did little by way of alleviating the affordability crisis. Despite declining from an average of $1,157,837 to $1,051,216 compared to last December, the high cost of borrowing kept prices high overall. 

People enjoy the Distillery District's Christmas Market while home sales languished in December, image by UT Forum contributor DarkSideDenizen

Examining these findings within the context of 2022 as a whole shows that these negative trends were not unique to the month of December, but were rather indicative of a challenging year for Toronto’s real estate market. 

“While home sales and prices dominated the headlines in 2022, the supply of new listings continued to be an issue as well,” said TRREB Chief Market Analyst Jason Mercer. “The number of homes listed for sale in 2022 was down in comparison to 2021. This helps explain why selling prices have found some support in recent months.”

Mercer went on to explain how the decline in sales can have trickle down effects into other areas of the market, specifically the rental market. “As renting has become more popular in this higher interest rate environment, tighter rental market conditions have translated into double-digit average rent increases,” he said. 

All these factors have set the stage for 2023 to be a challenging year for the real estate industry in Toronto as it attempts to address a number of pressing issues. 

“As we look forward into 2023, there will be two opposite forces impacting the housing market,” said TRREB CEO John DiMichele. “On the one hand, we will continue to feel the impact of higher borrowing costs. On the other hand, record levels of immigration will support demand for ownership and rental housing, while we struggle to come to terms with a housing and infrastructure deficit in the Greater Golden Horseshoe.” 

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UrbanToronto has a research service, UrbanToronto Pro, that provides comprehensive data on construction projects in the Greater Toronto Area—from proposal through to completion. We also offer Instant Reports, downloadable snapshots based on location, and a daily subscription newsletter, New Development Insider, that tracks projects from initial application.