The November statistics were announced with little surprise, showing a continued decline in sales transactions, but relative stability in the average sale price.
Since July of this year the average sale price has consistently hovered around $1,080,000. With the seventh increase in interest rates announced on December 7th, the industry expectation is that the average sale price will decline further in the first quarter of 2023 as affordability for home buyers continues to be challenged.
Sales in November were down in the GTA by 47% compared to sales in November 2021. Despite this, the months of inventory remained unchanged from October at 2.3%. This data point reflects on the demand in the existing market by taking the number of available homes for sale in a particular month and dividing it by the sales transaction for the same month. The lower the MOI the stronger the existing demand for housing is within the market. A balanced market typically reflects a MOI between four to six months of inventory so it seems demand levels still point to a seller’s market leading into 2023.
As referenced in my newsletter last month, the Prohibition on the Purchase of Residential Property by Non-Canadians Act comes into effect on January 1, 2023 and will remain in place for two years. There are a variety of exemptions to this of course, but we will be watching closely to see the effects on the market data as a result of its implementation.
The Canadian Real Estate Association’s proposed ban on exclusive listings has been kicked down the road into 2023, with a meeting scheduled in April to review the proposal and listen to Realtor’s feedback on this proposed change. It is our opinion that home owners should have the right to have the option of selling their home using the exclusive or the MLS systems (or a combination of both). More to come in the new year on this
Below is the video market report by Chestnut Park CEO Chris Kapches, and, as always, we welcome a call or an email to review your local market activity more closely with you.
