It’s no surprise that in such a tight market, Toronto’s January 2022 housing prices broke another record. With an increase of 28.6% year-over-year, Toronto’s average price now sits at an all-time high of $1,242,793. This is just about $12,000 shy of Vancouver’s unreachably high prices.
Some key statistics of note include:
- Months of Inventory (MOI): This number tells us how long the current inventory would last if no new listings appeared. In January the MOI was just one, which tells us just how low supplies are right now. Buyers hope to see that number sitting between four to six months to see prices stabilize.
- Sales-to-New-Listings Ratio: In January the Sales-to-New-Listings ratio was relatively low at 70%. This brings it into alignment with the early fall numbers of last year. It’s also a much more appealing number when compared to what we saw in November at 90%, and December at a startling 116%. The ideal number here is between 40% to 60%, so January was not that bad, with all things considered.
- List-to-Sell Ratio: The average selling price compared to the list price also tells us a lot about the market. In January 2022 it rose to 113%, meaning the average home sold for 13% over the asking price. This is 10% higher than the year before and 4% more than December 2021.
While this is all good news for sellers, with active listings down 44%, I can’t say the same for buyers. With inventory at the lowest we’ve seen in over 20 years, it appears that we can’t blame anything other than low supply for rising prices.
