January 2023 Real Estate Market Update
The Greater Toronto Area (GTA) housing market unfolded as expected in January, with the number of sales and overall selling price similar to December 2022.
Also unsurprisingly, both sales and prices were down markedly on a year-over-year basis, continuing to highlight the impact of higher borrowing costs on affordability over the last year.
The Toronto Regional Real Estate Board (TRREB) reported 3,100 sales through its MLS system in January — in line with the December result of 3,110, but down 44.6% from the blistering pace of sales seen in January 2022. January’s sales total represents the second lowest instance of sales since 2009. The only other time sales dipped to these levels was April 2020, which turned out to be an anomalistic low created by COVID uncertainty.
The average selling price for January at $1,038,668 was just slightly lower than the December result of $1,051,216, and down by 16.4% compared to the January 2022 average price reported before the onset of Bank of Canada interest rate hikes.
All market segments experienced year-over-year price losses, with the detached market leading the charge, down by 23%. The condo market saw prices decline the least by just over 8%.
Home prices declined over the past year as homebuyers sought to mitigate the impact of substantially higher borrowing costs. While short-term borrowing costs increased again in January, negotiated medium-term mortgage rates like the five-year fixed rate have actually started to trend lower compared to the end of last year. The expectation is this trend will continue, further helping with affordability as we move through 2023.
New listings remained scarce in January. The lack of inventory is creating increased competition for desirable homes, particularly in the lowrise category. As a result, listings are still selling, on average, in less than one month.
Months of inventory (MOI) at the end of January was 3 months, which is indicative of a more balanced market. (MOI tells us roughly how many months it would take to sell all of the active inventory in the market.) However, if the volume of listings remains low and buyers get off the sidelines, encouraged by the Bank of Canada indicating a potential pause in interest rate hikes, then the pendulum could swing back to a seller’s market.
Here’s how the real estate market performed in six Etobicoke neighbourhoods in January. 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: $1,482,547
Number of Homes Sold: 4
Average Days on Market: 8
In the community of Alderwood, 4 homes sold in January 2023, representing no change from the same month last year. The average selling price for homes fell by 28.3% to $1,482,547 in January, from $2,069,139 a year earlier. Two-storey detached homes (3) accounted for three-quarters of all sales in January 2023. Average days on market decreased to 8 days from 19 days year-over-year.
Average home prices for Alderwood for Q4 2022 are available here.
Islington-City Centre West
Average Home Price: $1,423,750
Number of Homes Sold: 4
Average Days on Market: 42
In the community of Islington-City Centre West, 4 homes sold in January 2023, representing a decrease of 6 homes from the same month last year. The average selling price for homes fell by 12.5% to $1,423,750 in January, from $1,626,910 a year earlier. Two-storey detached homes (2) accounted for half of all sales in January 2023. Average days on market increased to 42 days from 10 days year-over-year.
Overall Average Condo Price: $592,771
Total Number of Condos Sold: 31
Average Days on Market: 34
In the community of Islington-City Centre West, 31 condominium apartments sold in January 2023, representing a decrease of 11 units from the same month last year. The overall average selling price for condominium apartments decreased by 13.5% to $592,771 in January 2023, from $685,632 in January 2022.
The average selling price for one-bedroom, one-bathroom condominium apartments in Islington-City Centre West fell by 12% to $510,343 in January 2023, from $580,183 in January 2022. Average days on market increased to 34 days from 9 days over the same time period.
The average selling price for two-bedroom, two-bathroom condominium apartments in Islington-City Centre West fell by 14.8% to $634,767 in January 2023, from $745,125 in January 2022. Average days on market increased to 43 days from 31 days over the same time period.
Average home prices for Islington-City Centre West for Q4 2022 are available here.
Long Branch
Average Home Price: $933,000
Number of Homes Sold: 5
Average Days on Market: 37
In the community of Long Branch, 5 homes sold in January 2023, representing no change from the same month last year. The average selling price for homes fell by 35% to $933,000 in January 2023, from $1,434,785 in January 2022. One-and-a-half-storey homes (3) accounted for more than half of all sales in January 2023. Average days on market increased to 37 days from 20 days over the same time period.
Average home prices for Long Branch for Q4 2022 are available here.
Mimico
Average Home Price: $1,163,333
Number of Homes Sold: 3
Average Days on Market: 4
In the community of Mimico, 3 homes sold in January 2023, representing a decrease of 6 homes from the same month last year. The average selling price for homes fell by 28.9% to $1,163,333 in January 2023, from $1,636,333 a year earlier. Bungalows (2) accounted for two-thirds of all sales in January 2023. Average days on market decreased to 4 days from 8 days year-over-year.
Overall Average Condo Price: $697,433
Total Number of Condos Sold: 45
Average Days on Market: 25
In the community of Mimico, 45 condominium apartments sold in January 2023, representing a decrease of 23 units from the same month last year. The overall average selling price for condominium apartments fell by 17.5% to $697,433 in January 2023, from $845,197 in January 2022.
The average selling price for one-bedroom, one-bathroom condominium apartments in Mimico fell by 4.8% to $595,333 in January 2023, from $625,573 in January 2022. Average days on market decreased to 26 days from 52 days over the same time period.
The average selling price for two-bedroom, two-bathroom condominium apartments in Mimico fell by 17.1% to $810,700 in January 2023, from $977,681 in January 2022. Average days on market decreased to 10 days from 21 days over the same time period.
Average home prices for Mimico for Q4 2022 are available here.
New Toronto
Average Home Price: $1,525,000
Number of Homes Sold: 2
Average Days on Market: 34
In the community of New Toronto, 2 homes sold in January 2023, representing a decrease of 6 homes from the same month last year. The average selling price for homes fell by 4.8% to $1,525,000 in January 2023, from $1,602,000 a year earlier. Sales were split between a semi-detached bungalow (1) and a two-and-a-half-storey detached home (1) in January 2023. Average days on market increased to 34 days from 17 days year-over-year.
Average home prices for New Toronto for Q4 2022 are available here.
Stonegate-Queensway
Average Home Price: $1,788,529
Number of Homes Sold: 7
Average Days on Market: 26
In the community of Stonegate-Queensway, 7 homes sold in January 2023, representing a decrease of 2 homes over the same month last year. The average selling price for homes fell by 2.4% to $1,788,529 in January 2023, from $1,833,338 a year earlier. Two-storey detached homes (3) and bungalows (2) combined accounted for nearly three-quarters of all sales in January 2023. Average days on market decreased to 26 days from 42 days year-over-year.
Average home prices for Stonegate-Queensway for Q4 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.
