Durham Region 2022 Market Year In Review

Well 2022 is officially in the books, and it was quite a year, let's call it extraordinary in
many ways and the real estate market in Durham Region was no exception.
First I want to take a look at the December real estate market report for single family
homes specifically then we’re going to look at 2022 as a whole and then take a look at
what may be coming for 2023.

December comes with a slowing of the market due to the beginning of Winter and the
holiday season, but we still have home sales going on. The average sale price in
Whitby, Oshawa and Claringinton had slight dips while Ajax had an increase from the
previous week. Homes sold in Durham Region are almost half of what they were in
December of last year.

2022 was a landmark year in many ways. After the explosive market conditions that
dominated the news in 2020 and 2021, the market underwent a significant repositioning
last year as a result of the market's prompt response to the Bank of Canada's string of
significant interest rate increases.

However, despite the consequences of significantly higher borrowing rates and a
historically low level of sales, average sale prices still grew by double digits from 2021
to 2022. This illustrates the inherent worth of real estate, despite the difficult market
conditions brought on by strong government involvement.

This year in review, Durham Region home sales have decreased by 33% from 14,717 in
2021 to 9,875 in 2022, while the average home sales price has increased from
$925,710 in 2021 to $1,024,570 in 2022. The median home sales price has also
increased from the previous year by 10%, from $861,000 to $950,000.

Average sales price to list price has decreased by 2% but is sitting at 111% meaning
sellers are on average getting 11% more than asking price although the days on market
have increased from 9 days to 12 days. This means listings are sitting on the market a
bit longer as buyers take more time in making their final decisions.

Of course, interest rates were the true focus of the 2022 narrative. This year has had a
total of 7 interest rate hikes. In virtually lockstep with the aggressive rate-hike program
the BoC started in March, average sale prices in our local real estate market started to
shift downward. This has been an elongated downturn resulting in a more balanced
market.

What’s on the horizon?

No one can predict with certainty what will happen however there are indications we
might expect something like this: the supply crunch is still in existence with a build up of
buyers wanting to get into the market, downsize or just to make a move and they are
waiting for new listings to scoop up.

According to the Canadian Real Estate Association demand is likely to further increase
as we continue to see record levels of immigration.

Soon we'll receive our first indication of where interest rates might be going in 2023. The
Canadian Survey of Consumer Expectations and the Business Outlook Survey will both
be made public by the Bank of Canada.

Insights from conversations with company executives from roughly 100 companies are
combined in this research with findings from a quarterly survey that examines how
Canadian households feel about inflation, the labor economy, and household finances.
On January 25th the Bank will make the first of eight interest rate announcements it has
scheduled for the year. We’ll be watching closely.

Clearly, a lot has changed in the past 12 months. If you’d like to find out what your home
is worth now please feel free to give me a call!

Want more tips on preparing your home for sale?

Call today!
905-655-4699

Thknking of a sale? Call Lisa Fayle!

Or send me an e-mail at: Lisa@LisaFayleTeam.com

Be sure to check out the blog at: www.lisafayle.com/blog
New articles are posted every week with the latest real estate tricks of the trade!

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