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Toronto region home sales down 48.2 per cent in December from previous year

Home sales in the Greater Toronto Area (GTA) fell sharply in December 2022 when compared to the previous year, as heightened interest rates weighed on the housing market, according to a new report.

In total, 3,117 sales occurred in the GTA during the month of December, marking a 48.2 per cent decline from the previous year, according to a release from the Toronto Regional Real Estate Board (TRREB) on Thursday. New listings totalled 4,074 during the month, coming in 21.3 per cent lower year-over-year.

The average selling price in the GTA during December was $1,051,216, down from $1,157,837 in the previous year, which marked a 9.2 per cent decrease.

The Bank of Canada raised interest rates seven times in 2022, bringing its policy rate to 4.25 per cent, in an effort to bring inflation back down to its two per cent target.


The GTA housing market experienced an “adjustment” in 2022, TRREB said in the release, as issues of affordability stemming from limited supply were worsened by heightened interest rates.

“Following a very strong start to the year, home sales trended lower in the spring and summer of 2022, as aggressive Bank of Canada interest rate hikes further hampered housing affordability,” TRREB president Paul Baron said in the release.

Home prices began to level off during the late summer months, which might indicate the market adjustment could be nearing its conclusion, Baron said.

“With no relief from the Office of Superintendent of Financial Institutions (OSFI) mortgage stress test or other mortgage lending guidelines including amortization periods, home selling prices adjusted downward to mitigate the impact of higher mortgage rates,” Baron said.

Total home sales in the GTA hit 75,140 in 2022, the release said, a 38.2 per cent decline from the 2021 record of 121,639. The number of new listings during the year was 152,873, down 8.2 per cent from the previous year of 166,600 listings.

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