PUBLISHED: Feb 8, 2023
The climate of chaotic prices and soaring interest rates that plagued the Greater Toronto Hamilton Area (GTHA) housing market in 2022 resulted in the lowest level of new home sales the region has seen in half a decade.
According to recent reports from various sources, 25,400 new homes were sold across the GTA last year, the lowest level since 2018. Well below the 10-year average.
Sales of new singly-family homes suffered significantly, with only 4,483 units changing hands in 2022. Accounting for detached, linked, and semi-detached houses, as well as townhouses, the figure is 64% below the 10-year average.
With 20,917 units sold in 2022, sales of condominium apartments — units in low, medium, and high-rise buildings, stacked townhouses, and loft units — were 12% below the 10-year average.
Although prices had found some stability by year-end, buyers and sellers remained hesitant (understandably so).December saw the second-lowest level for the month since tracking began — only recession-plagued December 2008 saw lower sales levels. Accounting for homes sold and condo apartments also experienced their second-lowest sales level on record for the month of December.
The GTHA now has 6.6 months of condo inventory and 4.6 months of single-family inventory, making it a buyers market. However, these numbers are declining rapidly, indicating a potential rainbow in an otherwise dreary forecast.
The reluctance home buyers showed in the latter half of 2022 was no doubt largely the result of continued high interest rates, coupled with uncertainty.
The federal government needs to reconsider its approach to monetary policy so families can purchase the homes they need without artificial obstacles, no matter how well intended.
Les Sohar and Chris Sohar
ReMax