February 2023 Real Estate Market Update

Home sale prices for all property types saw a bump in February, up 5.4% from January, following the regular seasonal trend.

The detached market realized an impressive uptick of 7.2%, resulting in an average sales price of $1,439,735 — the largest increase since January 2022. Similarly, the condominium market increased month-over-month with an appreciation of 2.5%, translating into an average sales price of $705,472 for the month of February.

However, on a year-over-year basis, prices were down 17.9%. Some of this decline is attributable to the fact that the share of sales below $1 million was 57% in February 2023, versus only 38% a year earlier. Since the Bank of Canada started aggressively raising interest rates, many homebuyers have decided to purchase a lower priced home to help offset higher borrowing costs.

All property types experienced double-digit declines, though price losses were felt greatest outside Toronto-proper. The average selling price for detached and semi-detached homes fell 21.5% and 25.9%, respectively, in the 905-region, compared to 17.5% and 14.9% in the 416-area.

As for market activity, the number of properties sold and inventory levels both rose in February, from January. That said, transactions continue to lag when compared to the level of activity seen over the past several years. The Toronto Regional Real Estate Board reported 4,783 sales in February 2023, down 47% from February 2022. The number of new listings was down by a similar annual rate of 40.9% to 8,367.

Despite the significant year-over-year declines, February’s data is positive and bodes well for the rest of 2023, if interest rates aren’t further hiked. The numbers point to the return of stability and significant demand that will propel the market higher as consumer confidence continues to rise.

In the short-term, more inventory in spring will be welcomed by eager buyers who have been stymied by an ultra-low inventory environment. Months of inventory at the end of February was 2 months, down from 3 months in January, indicating a tightening of market conditions.

Here’s how the real estate market performed in six Etobicoke neighbourhoods in February. If you live in or are interested in obtaining real estate data on another neighbourhood, contact Clare Tattersall at 647-625-3282 or clare@realtorontowest.com.

Alderwood
Average Home Price: $2,063,600
Number of Homes Sold: 5
Average Days on Market: 40

In the community of Alderwood, 5 homes sold in February 2023, representing a decrease of 1 home from the same month last year. The average selling price for homes rose by 9.3 % to $2,063,600 in February 2023, from $1,887,500 a year earlier. This increase in home values may be attributed to sales of higher-end homes in February 2023, as well as that two-storey detached homes (4) accounted for almost all sales. Average days on market increased to 40 days from 9 days year-over-year.

Average home prices for Alderwood for Q4 of 2022 are available here.

Islington-City Centre West
Average Home Price: $1,934,273
Number of Homes Sold: 11
Average Days on Market: 27

In the community of Islington-City Centre West, 11 homes sold in February 2023, representing an increase of 2 homes from the same month last year. The average selling price for homes rose by 2.5% to $1,934,273 in February 2023, from $1,886,476 a year earlier. This increase in home values may be attributed to sales of higher-end homes in February 2023. Two-storey homes (4) and bungalows (3) combined accounted for nearly two-thirds of all sales in February 2023. Average days on market increased to 27 days from 12 days year-over-year.

Overall Average Condo Price: $643,710
Total Number of Condos Sold: 21
Average Days on Market: 25

In the community of Islington-City Centre West, 21 condominium apartments sold in February 2023, representing a decrease of 33 units from the same month last year. The overall average selling price decreased by 10.3% to $643,710 in February 2023, from $717,297 a year earlier.

The average selling price for one-bedroom, one-bathroom condominium apartments in Islington-City Centre West fell by 15.1% to $544,813 in February 2023, from $641,658 in February 2022. Average days on market increased to 33 days from 6 days over the same time period.

The average selling price for two-bedroom, two-bathroom condominium apartments in Islington-City Centre West fell by 13.7% to $704,300 in February 2023, from $815,740 in February 2022. Average days on market increased to 26 days from 11 days over the same time period.

Average home prices for Islington-City Centre West for Q4 of 2022 are available here.

Long Branch
Average Home Price: $1,157,232
Number of Homes Sold: 4
Average Days on Market: 6

In the community of Long Branch, 4 homes sold in February 2023, representing a decrease of 3 homes from the same month last year. The average selling price for homes fell by 41.5% to $1,157,232 in February 2023, from $1,979,484 in February 2022. Bungalows (3) accounted for three-quarters of all sales in February 2023. Average days on market decreased to 6 days from 12 days over the same time period.

Average home prices for Long Branch for Q4 of 2022 are available here.

Mimico
Average Home Price: $1,201,357
Number of Homes Sold: 7
Average Days on Market: 32

In the community of Mimico, 7 homes sold in February 2023, representing an increase of 1 home from the same month last year. The average selling price for homes fell by 31.4% to $1,201,357 in February 2023, from $1,750,000 a year earlier. Two-storey detached homes (3) accounted for nearly half of all sales in February 2023. Average days on market increased to 32 days from 18 days year-over-year.

Overall Average Condo Price: $771,778
Total Number of Condos Sold: 50
Average Days on Market: 19

In the community of Mimico, 50 condominium apartments sold in February 2023, representing a decrease of 36 units from the same month last year. The overall average selling price fell by 12.7% to $771,778 in February 2023, from $883,956 a year earlier.

The average selling price for one-bedroom, one-bathroom condominium apartments in Mimico fell by 11.8% to $595,750 in February 2023, from $675,167 in February 2022. Average days on market increased to 19 days from 10 days over the same time period.

The average selling price for two-bedroom, two-bathroom condominium apartments in Mimico fell by 18.7% to $762,654 in February 2023, from $938,091 in February 2022. Average days on market increased to 17 days from 8 days over the same time period.

Average home prices for Mimico for Q4 of 2022 are available here.

New Toronto
Average Home Price: $1,093,750
Number of Homes Sold: 4
Average Days on Market: 29

In the community of New Toronto, 4 homes sold in February 2023, representing a decrease of 1 home from the same month last year. The average selling price for homes fell by 29.9% to $1,093,750 in February 2023, from $1,560,080 a year earlier. Bungalows (2) accounted for half of all sales in February 2023, followed by two-storey detached (1) and semi-detached (1) homes. Average days on market increased to 29 days from 11 days year-over-year.

Average home prices for New Toronto for Q4 of 2022 are available here.

Stonegate-Queensway
Average Home Price: $1,812,677
Number of Homes Sold: 13
Average Days on Market: 13

In the community of Stonegate-Queensway, 13 homes sold in February 2023, representing a decrease of 11 homes over the same month last year. The average selling price for homes fell by 1.7% to $1,812,677 in February 2023, from $1,843,150 a year earlier. Two-storey detached homes (6) accounted for nearly half of all sales in February 2023. Average days on market increased to 13 days from 7 days year-over-year.

Average home prices for Stonegate-Queensway for Q4 of 2022 are available here.

Overall average condo price includes all condo apartment configurations. One-bedroom condos include one bathroom only. Two-bedroom condos include two bathrooms only.