GTA Real Estate Market Report, October 2022

November 3, 2022


TORONTO, ONTARIO, November 3, 2022 – Despite the continued housing market transition to a higher borrowing
cost environment, the average selling price in the Greater Toronto Area (GTA) found some support near $1.1 million
since the late summer. GTA home sales continued to adjust to substantially higher interest rates in October 2022, both
on an annual and monthly basis. However, new listings are also down year-over-year and month-over-month. The
persistent lack of inventory helps explain why the downward trend in home prices experienced in the spring has
flattened over the past three months.
GTA REALTORS® reported 4,961 sales through the Toronto Regional Real Estate Board’s (TRREB) MLS® System in
October 2022 – a similar number to September 2022 but down by 49.1 per cent compared to October 2021. Yearover-
year sales declines were similar across major market segments.
New listings were down by 11.6 per cent year-over-year and reached an October level not seen since 2010. New
listings were down on an annual basis more so for mid-density and high-density home types, which helps to explain
why prices have held up better in these categories compared to detached houses.
“With new listings at or near historic lows, a moderate uptick in demand from current levels would result in a noticeable
tightening in the resale housing market in short order. Obviously, there is still a lot of short-term economic uncertainty.
In the medium-to-long-term, however, the demand for housing will rebound. Public policy initiatives like the recently
introduced provincial More Homes Built Faster Act and strong mayor provisions will help ensure we see more homes
being built to affordably meet the needs of new households,” said TRREB President Kevin Crigger.
The MLS® Home Price Index (HPI) Composite Benchmark was down by 1.3 per cent year-over-year in October 2022.
The average selling price for all home types combined, at $1,089,428, was down by 5.7 per cent compared to October
2021. The monthly trends for both the MLS® HPI Composite and the average selling price have flattened in recent
months following steeper declines in the spring and early summer.
“Home prices in the GTA have found support in recent months because price declines in the spring and summer
mitigated the impact of higher borrowing costs on average monthly mortgage payments. The Bank of Canada’s most
recent messaging suggests that they are reaching the end of their tightening cycle. Bond yields dipped as a result,
suggesting that fixed mortgage rates may trend lower moving forward, which would help affordability,” said TRREB
Chief Market Analyst Jason Mercer.

To see the full report, click HERE