Home sales were down compared to the same time last year but the market has remained a seller’s market in all segments. While available listings were up an average of 46% from January, sales were also up by an average of 45%. One small trend that emerged in February and has continued early on in March is that the low-rise segment has lost some of its steam. While still remaining a strong seller’s market, there are fewer showings, fewer offers and the occasional property that sits on the market for longer periods of time. Condos, meanwhile have continued with extreme price growth as some buyers have shifted to a more “affordable” solution. Below you find the full details of the February 2022 market report.
What is an absorption rate or months of inventory?
The absorption rate or months of inventory (M.O.I. for short) is deemed the most accurate way to pinpoint whether a market is in favour of sellers or buyers. Found by comparing home sales versus how many listings are currently on the market, M.O.I. essentially asks the question: How long would it take for every single property to sell if no new homes were put up for sale?
LOW-RISE (detached, semi, & townhomes)
As indicated by the months of inventory report or MOI, the February 2022 market report shows that low-rise properties have continued trending up in prices, although not as strong as in previous months. Multiple offers are still the norm but there are early signs of a slight shift in the market. As mentioned above, some properties remain on the market past their offer date or don’t get as many offers as they would have in previous months. This trend is happening mostly in York Region and Toronto for now.
Despite the slight shift detached homes in the GTA have had strong upward pressure on prices in February. The strongest seller’s markets remain in the suburbs. Namely, Durham Region (0.6 M.O.I.), Peel Region (0.7 M.O.I.) & Halton Region (0.7 M.O.I.). Toronto (1.1 M.O.I.) & York Region (1.1 M.O.I.) remain seller’s markets but the upward pressure on prices is slightly less than in the suburbs.
Semi-detached homes, freehold townhouses and condo townhouses have also cooled off just a bit, however, their price growth is still stronger than that of detached houses. Absorption rates for this segment range from 0.5 M.O.I. to 0.8 M.O.I. across the GTA.
HIGH-RISE (condo apartments)
The condo market has gone from a moderate seller’s market late last year, to an extreme seller’s market in the month of February. The hottest markets are in Peel Region (0.4 M.O.I.), Durham Region (0.4 M.O.I.), Halton Region (0.6 M.O.I.), and York Region (0.6 M.O.I.). Condos in Toronto (0.8 M.O.I.) are also experiencing a very hot market. Multiple offers for this segment are the norm now and each new unit that becomes available tends to break a new record.
Would you like to know what’s happening with home prices in your area? Check below
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