Average GTA home price reaches $1,242,793 as sales drop 18%

GTA home sales may have fallen 18.2% last month, but the average selling price has never been higher.

The Toronto Regional Real Estate Board (TRREB) released its January Market Watch report, revealing that 5,636 homes changed hands last month in the GTA. Although down from January 2021’s record-high 6,888 home sales, it still holds the record for the second-strongest January on record for the GTA.

And as sales dropped, prices rose significantly compared to last January across all home types.

“The continuation of tight market conditions resulted in a 33.3% annual increase in the MLS Home Price Index Composite benchmark,” the report reads. “Similarly, the average selling price was up by 28.6% year-over-year to $1,242,793.”

Detached homes sold at an average price of $1,741,318 in January — a 28.3% increase year-over-year. The most significant change was seen in townhouses, which have an average price of $1,083,000 — a whopping 34.8% increase from January 2021.

As to be expected, the largest chunk of sales took place in Toronto, which accounted for 2,247 of January’s transactions, with an average selling price of $1,073,111 across all home types. It was followed by Brampton, which saw 603 sales at an average price of $1,367,444.

The drop in sales correlates to a drop in new listings, which fell by 15.5% year-over-year. At the end of January, the number of active listings totalled just 4,140 — the lowest level seen in more than two decades. Limited inventory levels have been a major contributor to rapidly rising home prices as aspiring buyers compete fiercely over the homes that are coming on the market.

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Looking forward, TRREB predicts that sales for all of 2022 will be lower than what was seen in 2021, but will still be strong compared to previous years. The average selling price for the entire year is expected to jump 12% compared to 2021, reaching a new high of $1,225,000.