House sales (low-rise detached, semi-detached, townhouse, etc.) in the Greater Toronto Area (GTA) in August 2022 were down 30% over the same month last year and represents a 20-year low for the month of August . While home sales typically decline from July and August, we did see a 17% increase in home sales in August compared to July.
New house listings in August were up 2% over last year, but below typical new listing volumes for the month of August.
The number of houses available for sale (“active listings”) was up 80% when compared to the same month last year, but still well below pre-COVID levels for the month of August.
The Months of Inventory ratio (MOI) looks at the number of homes available for sale in a given month divided by the number of homes that sold in that month. It answers the following question: If no more homes came on the market for sale, how long would it take for all the existing homes on the market to sell given the current level of demand?
The higher the MOI, the cooler the market is. A balanced market (a market where prices are neither rising nor falling) is one where MOI is between four to six months. The lower the MOI, the more rapidly we would expect prices to rise.
While the current level of MOI gives us clues into how competitive the market is on-the-ground today, the direction it is moving in also gives us some clues into where the market may be heading.
The MOI for houses declined from 2.8 MOI in July to just 2 MOI in August. The decline in the MOI is a function of a higher number of sales and fewer active listings in August when compared to July.
The share of houses selling for more than the owner’s asking price declined to 26% in August.
The average price for a house in August was $ 1,310,025 in August 2022, well below the peak of $ 1,679,429 reached in February and down 1% when compared to the same month last year.
The median house price in August was $ 1,105,000, down 5% over last year, and below the peak of $ 1,485,000 reached in February.
The median is calculated by ordering all the sale prices in a given month and then selecting the price that is in the midpoint of that list such that half of all home sales were above that price and half are below that price. Economists often prefer the median price over the average because it is less sensitive to big increases in the sale of high-end or low-end homes in a given month which can skew the average price.
Condo (condominiums, including condo apartments, condo townhouses, etc.) sales in the Toronto area in August 2022 were down 41% over last year and well below pre-COVID sales volumes for the month of August. Sales were up 9% over the previous month.
New condo listings were down 7% in August over last year and in line with historical listing volumes for the month of August.
The number of condos available for sale at the end of the month, or active listings, was up 35% over last year.
Condo inventory levels declined from 3.6 MOI in July to 2.9 MOI in August. This decline was due to a higher number of sales and lower inventory levels in August compared to July.
The share of condos selling for over the asking price declined to 20% in August.
The average price for a condo in August fell to $ 730,188, down from the peak of $ 840,444 in March. The average price is up 3% over last year. The median price for a condo in August was $ 670,000, up 5% over last year, but down from $ 777,000, the March peak.
Houses
Average prices were down over last year in Durham, Halton, Peel Regions and the City of Toronto, but still up slightly in York Region. Sales were down significantly across all regions and inventory levels were well ahead of last year’s level.
Condos
While condo sales were down across the GTA, average prices continue to be up over last year in all five regions. Sales were down significantly across all regions and inventory levels were well ahead of last year’s level.
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