The Toronto Regional Real Estate Board has released its TRREB February 2023 housing market report, and here is a quick review for your benefit. In short, the market was still struggling, yet there were a few signs of life.
This review covers TRREB’s February 2023 report. The figures below are from that month.
TRREB February 2023 sales: fewer homes changed hands
Compared with last year, far fewer residential properties changed ownership. In fact, almost half as many homes sold in February this year as in the same month of 2022, which is down 47%.
But there was light at the end of the tunnel. The numbers also showed an uptick in real estate transactions compared with January 2023. Sales were up 8.5% month over month.
So the year-over-year picture looked weak, while the month-over-month picture looked a little better. Both views matter, because one shows the trend and the other shows the direction right now.
Average prices and new listings
It was good news for buyers to see the average selling price continue to decline. The average selling price kept heading south, with a significant drop of 17.9% compared with February 2022. It was also down 0.7% compared with January 2023.
Meanwhile, sellers seemed to be holding on to their properties. The TRREB February 2023 report showed new listings down 40.9% compared with the same month last year.
For buyers, lower prices were welcome. However, fewer listings also meant fewer choices. For sellers, holding back kept supply tight, which helped limit how far prices could fall.
Days on market and the sales-to-new-listings ratio
New listings did come to market, yet not all of them sold. As a result, the sales-to-new-listings ratio fell by 7%.
The biggest shift was in how long properties stayed on the market. In the TRREB February 2023 data, the number of days a property remained on the market rose by a whopping 200% compared with the same month last year. Clearly, properties were not selling as quickly as before.
For sellers, that meant pricing and presentation mattered more than ever. For buyers, it meant more time to compare homes and negotiate.
Here is a simple way to use this measure. If homes in your area sit for weeks, a buyer can often ask for better terms, such as a longer closing or a home inspection condition. On the other hand, if homes sell in days, a buyer needs a firm budget and a mortgage pre-approval ready before making an offer.
Condo apartments in the TRREB February 2023 report
On the condominium apartment side, sales were down by more than half. Condo apartment sales fell 54.1% in Q4 2022 compared with Q4 2021. Even so, the average selling price stayed unchanged at $710,246.
Total new condo listings also declined, down 14.3% in Q4 2022 compared with Q4 2021. In addition, far fewer apartments sold compared with new listings in Q4, which is a 41% decrease from Q4 2021. The apartments also stayed on the market 50% more days in Q4.
Rental apartments
The drop in rental apartment transactions and the rise in rent for one-bedroom units were worrying for renters. Rental apartment transactions fell 19.9% when comparing Q4 2022 with Q4 2021.
At the same time, rent for one-bedroom apartments rose 19% in Q4. This increase could be the result of fewer apartments available for rent, since available units dropped 11.8% in Q4. In other words, the TRREB February 2023 report pointed to tight rental supply.
Commercial leasing and sales
On the commercial side, the TRREB February 2023 report showed leasing and sales activity declining overall. Year-over-year commercial leasing activity fell 7% in February 2023, while commercial sales saw a bigger drop of 47.9% compared with last February.
On the contrary, industrial and office leasing rose 31.3% and 9.8%, respectively. Yet when combined, the average showed a 13.2% decrease. So commercial results varied by type rather than falling across the board.
What the TRREB February 2023 numbers mean for you
Overall, the market still seemed to be struggling, and it was going to be interesting to see how it progressed in the coming months. You can compare this month with my later July 2023 housing report review and my September 2023 review. The full monthly reports are on the TRREB website.
Much has changed since then, so treat the TRREB February 2023 figures as a snapshot of that month. Still, a few lessons last. Buyers should watch days on market, because longer times often open room to negotiate. Sellers should price with care, because a stale listing can lose momentum.
Professionals have the knowledge and experience to offer solutions you might not have thought of yourself. Therefore, getting help from a professional can often lead to better outcomes and help you reach your goals more efficiently.
Talk to a Mississauga real estate agent
Do you have questions about buying, selling or simply planning your next move in Mississauga or the GTA? I am happy to help, so please send me a message or call me at 416 908 5600. If you found this review helpful, I would greatly appreciate a Google Review for my real estate services. Thank you for your continued support. A. Q. Mufti, Sales Representative, RE/MAX Real Estate Centre Inc., Brokerage
Disclaimer: this article was published on 18 January 2025 and reflects the information available at that time. Interest rates, prices, and government programs change, so check the current position before acting on anything here. It is provided for information only and is not financial, mortgage, tax or legal advice. A. Q. Mufti is a registered Sales Representative with RE/MAX Real Estate Centre Inc., Brokerage, Ontario, Canada.
