The December housing sales figures have been released and the year end statistics clearly reflect the impact of higher mortgage rates.
The Toronto Regional Real Estate Board (TRREB) recorded 75,140 residential transactions during 2022, which is 38.2% lower than the record setting total of 152,873 sales achieved during 2021. As consumers adjusted to higher mortgage rates, fewer homeowners listed their houses and condos onto MLS. During 2022, the number of new listings was 8.2% lower when compared to 2021.
The average price during 2022 was $1,189,850, which is 8.6% higher that the average sale price during 2021. The higher average sale price can be attributed to high sale prices during the beginning of the year when mortgage rates were lower and a lower level of inventory during the last four months of the year.
Within Durham Region, TRREB reported a year end total of 9,875 residential real estate transactions during 2022, which is 33% lower than the record setting sales level achieved during 2021. For perspective, the total number of sales during 2019 (pre-covid) was 10,634, which represents a more typical level of transactions.
The average sale price of a residential property within Durham Region during 2022 was $874,456, which is 15% lower than the average sale price achieved during 2021.
Forecasting the real estate market for 2023 is difficult because interest rates may decline at some point during the year. Currently, consumers have accepted and adjusted to higher mortgage rates. On a positive note, the current level of sales volume is now in-line with longer term averages. The constrained supply of available listings has helped to maintain stability during the past few months, and it will contribute to a stable marketplace going forward. Until mortgage rates decline, the market should maintain its present path, but once interest rates begin to fall, sales volume will increase and pent-up demand should propel prices higher, albeit modestly. Many experts predict that 2024 may see more significant decreases in lending rates and if that is the case, a larger rebound in prices and sales activity will unfold.
If you are thinking of a move and want intelligent advice during this ever-changing market, please contact me. I’ll give you experienced advice. When the market gets more challenging, nothing beats my decades of experience and my ability to help clients move during changing market conditions.
If you choose to sell, my staging services, digital marketing and social media promotions will get you plenty of exposure, helping to ensure a smooth and worry-free sale.
The Toronto Regional Real Estate Board (TRREB) recorded 75,140 residential transactions during 2022, which is 38.2% lower than the record setting total of 152,873 sales achieved during 2021. As consumers adjusted to higher mortgage rates, fewer homeowners listed their houses and condos onto MLS. During 2022, the number of new listings was 8.2% lower when compared to 2021.
The average price during 2022 was $1,189,850, which is 8.6% higher that the average sale price during 2021. The higher average sale price can be attributed to high sale prices during the beginning of the year when mortgage rates were lower and a lower level of inventory during the last four months of the year.
Within Durham Region, TRREB reported a year end total of 9,875 residential real estate transactions during 2022, which is 33% lower than the record setting sales level achieved during 2021. For perspective, the total number of sales during 2019 (pre-covid) was 10,634, which represents a more typical level of transactions.
The average sale price of a residential property within Durham Region during 2022 was $874,456, which is 15% lower than the average sale price achieved during 2021.
Forecasting the real estate market for 2023 is difficult because interest rates may decline at some point during the year. Currently, consumers have accepted and adjusted to higher mortgage rates. On a positive note, the current level of sales volume is now in-line with longer term averages. The constrained supply of available listings has helped to maintain stability during the past few months, and it will contribute to a stable marketplace going forward. Until mortgage rates decline, the market should maintain its present path, but once interest rates begin to fall, sales volume will increase and pent-up demand should propel prices higher, albeit modestly. Many experts predict that 2024 may see more significant decreases in lending rates and if that is the case, a larger rebound in prices and sales activity will unfold.
If you are thinking of a move and want intelligent advice during this ever-changing market, please contact me. I’ll give you experienced advice. When the market gets more challenging, nothing beats my decades of experience and my ability to help clients move during changing market conditions.
If you choose to sell, my staging services, digital marketing and social media promotions will get you plenty of exposure, helping to ensure a smooth and worry-free sale.