The first month of the new year continued the trend from the end of 2022: a sales price decline. While it was only a 1.2% drop, from $1,051,216 in December to $1,038,668 in January, it isn’t often we see a drop from December to January. It’s actually only happened six times in the last 20 years. The year-over-year decline is steeper, at a 16.4% drop. But, remembering that we were near the 2022 real estate peak at this time last year, that drop is not that surprising.
In terms of total sales, 3,100 homes were sold last month, down 0.5% from December’s 3,117. The 3,100 is also the lowest number sold in the month of January since 2009. When looking at year-over-year sales results, the drop is 44.6% (5,594).
Listings
January’s new listing numbers look much better. The 7,688 in January is up 88.7% from the 4,074 new dwellings listed for sale in December. This isn’t wholly unexpected, as a sizable yearly increase between the two months is normal. While the 7,688 new listings is only down 3.7% from this time last year, it is also actually the lowest January total of the last 20 years.
There were 9,299 active listings in January, a 7% increase from December. And that number represents 124.6% growth from the 4,140 that were active in January in 2022. Keep in mind that January/February 2022 were the peak of the COVID market frenzy so all stats in comparison to that point will seem a little extreme.
Toronto
In January, 1,108 homes were sold in the 416, down from the 1,162 in December. The average price of homes also fell significantly, from December’s $1,017,189 to $987,842. Central Toronto led the way in sales with almost half of the total, at 535 and a $1,031,064 average price. December featured 560 sales at a $1,126,006 price average in the same region.
New listings reached 3,010, while active listings came in at 3,880. The 48.1% Sales-to-New-Listings Ratio (SNLR) ratio is a few points lower than the 50.1% from December.
2023 Early Outlook
Many analysts are expecting the most recent Bank of Canada interest hike to be the last for a long time. Let’s hope that they’re right! While the rates won’t likely be lowered anytime soon, at least it won’t get any higher for the time being. Another positive is that in Canada, inflation fell to 6.3% in December. And there’s hope that January’s numbers will be lower than that. We take a more in-depth look in our recent blog.
What to Do
Now that we’re solidly into 2023, are you looking at getting into the market? Are you unsure if it is the right move for you, given the current landscape? I’ll evaluate your unique situation and give you an honest and informed opinion on your options and the best approach for success. No pressure, just sound guidance. Just schedule a consultation or call/text 416-882-4707.
Photo by Bob Canning on Unsplash
