The average selling price for all Greater Toronto Area homes saw another drop in December to close 2022 – a year in which the region's housing market started strong before being tempered by interest rate hikes.

On Thursday, the Toronto Regional Real Estate Board (TRREB) released December's housing numbers, showing the average price across all properties was at $1,051,216 – a decrease of about $28,000 from the previous month's figure of $1,079,298.

The number was a 9.2 per cent decline from the $1,157,837 recorded a year ago.

According to the TRREB, the average price of a detached home was down 13.4 per cent year-over-year to $1,384,586, while the average cost for a condo dropped 0.9 per cent to $705,659. However, it should be noted that in the City of Toronto, the price of a condo increased by 1.4 per cent to $741,584.

Home sales and new listings were also down last month. According to the TRREB data, there were 3,117 properties sold in December – down 48.2 per cent from the same month a year ago.

Meanwhile, 4,074 new properties were put on sale in December. That is down from the 5,177 new listings in Dec. 2021.

TRREB also released its numbers for the entire year. Overall in 2022, there were 75,140 transactions – a steep decline from the 2021 record of 121,639. New listings were also down 8.2 per cent last year compared to 2021.

"Following a very strong start to the year, home sales trended lower in the spring and summer of 2022, as aggressive Bank of Canada interest rate hikes further hampered housing affordability," TRREB President Paul Baron said in a statement accompanying the latest data.

While home selling prices decreased during the latter part of the year, the hot start seen at the beginning of 2022 pushed the average selling price to $1,189,850, up 8.6 per cent in comparison to 2021's $1,095,222.

In 2022, the average price of a dwelling in the GTA increased by 7.4 per cent and 11.3 per cent, respectively. The TRREB said the pace of growth has since "moderated."

"With no relief from the Office of Superintendent of Financial Institutions (OSFI) mortgage stress test or other mortgage lending guidelines including amortization periods, home selling prices adjusted downward to mitigate the impact of higher mortgage rates," Baron said. "However, home prices started levelling off in the late summer, suggesting the aggressive early market adjustment may be coming to an end."

Meanwhile, TRREB Chief Market Analyst Jason Mercer noted that the lack of new listings explains why home selling prices are still high. He added that the lack of supply and higher borrowing costs have pushed people to opt into the rental market.

"As renting has become more popular in this higher interest rate environment, tighter rental market conditions have translated into double-digit average rent increases," Mercer said.

As for what the group is expecting this year, the TRREB said there would be two opposite contributing factors to monitor.

"On the one hand, we will continue to feel the impact of higher borrowing costs," TRREB CEO John DiMichele said. "On the other hand, record levels of immigration will support demand for ownership and rental housing, while we struggle to come to terms with a housing and infrastructure deficit in the Greater Golden Horseshoe."