December 7, 2022
Durham Region Association of REALTORS® President Meredith Kennedy reported 564 residential transactions in November representing a significant 44 per cent decrease from this time last year. The number of sales reported in Durham decreased by 10.7 per cent on a month-over-month basis. The number of new listings was 1,037 in November, comparable to the 1,044 reported at this time last year.
Sales are down considerably due to the escalating borrowing costs. For example, a home sold in February 2022 with interest rates at 1.99 per cent has the same mortgage payment if it was sold in October 2022 for three hundred thousand dollars less with the heightened rates at 5.25 per cent. The continued escalating interest rates have cooled the market from the previous year’s record activity, but it is only a short-term solution and is proving to have adverse effects on buyers’ ability to enter the market.
“We are experiencing declining homeownership activity across all markets as a result of the borrowing costs. High borrowing costs after a period of historically low rates has had a massive impact on the market,” stated DRAR President Meredith Kennedy. “Although this is a shock and we are seeing the declines right now; this is a short-term impact. We have to keep in mind the influx of immigration expected over the next few years and the lack of housing supply.”
“Durham Region is one of the fastest-growing areas in Canada with our population expected to almost double by 2041. With population growth trending upward and the high demand for homeownership East of Toronto, policymakers need to focus on long-term solutions as opposed to continued rate increases,” said DRAR CEO Wendy Giroux. “We are in the midst of a housing supply crisis, there is simply not enough inventory to match the large demand. Our policymakers must focus on solutions that tackle the lack of the supply now. The More Homes Built Faster Act is a positive start.”
The MLS® Home Price Index Composite Benchmark was down 8.57 per cent at $929,000. The Benchmark price for a single family detached home in Oshawa was $880,000 representing a 7.60 per cent year-over-year decrease. The average price reported in November was $892,677; this is a 10.6 per cent decrease from this time last year.
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