Home sales in the Greater Toronto Area (GTA) declined 48% in December from a year earlier as higher interest rates continue to cool Canada’s housing market.
In total, 3,117 sales occurred in Greater Toronto during December, a 48% drop from the previous year, according to the Toronto Regional Real Estate Board (TREB).
New listings during December totalled 4,074, down 21% year-over-year. The average selling price in the GTA was $1.05 million, down nearly 10% from $1.16 million in December 2021.
The Bank of Canada has raised interest rates seven times over the last year, bringing its benchmark overnight rate to 4.25%. Consequently, many mortgage rates across Canada are now above 6%.
Total home sales in Greater Toronto during 2022 were 75,140, a 38% decline from a record 121,639 reached in 2021.
Vancouver Home Sales Down 52%
In Vancouver, British Columbia, home sales and prices continued to decline in December, falling 52% from the same month in 2021.
The Greater Vancouver Real Estate Board said December sales totalled 1,295, which was 20% lower than in the previous month of November and 38% below the 10-year December sales average.
For all of 2022, Vancouver home sales totaled 28,903, a decline of 34% compared with 2021.
Home prices also continue to decline in Vancouver, with the average price in December at $1.11 million, a 3% decrease from December 2021.
The Greater Vancouver Real Estate Board attributed the sale and price declines to higher interest rates and persistent inflation that has pushed many would be homebuyers to the sidelines.
