Sales of homes across the Greater Toronto Area plunged 41 per cent last month compared to the same time last year as higher borrowing costs took their toll, the Toronto Regional Real Estate Board (TRREB) reports.
The number of transactions was also down compared to May, but that’s mostly because of seasonal trends, it assures. The average home price hit $1,146,254 last month, a drop of 5.3 per cent from June 2021 but an almost six per cent drop from May 2022.
A total of 6,474 homes exchanged hands in June, down from 11,053 in June 2021. Of those exchanges, 1,011 took place in York Region, which saw 1,422 new listings and has 2,932 active listings. The average selling price in York was $1,090,841. Here’s the average selling price by municipality: Aurora ($1,462,738), East Gwillimbury ($1,255,788), Georgina ($934,597), King ($2,082,595), Markham ($1,338,179), Newmarket ($1,144,980), Richmond Hill ($1,353,611), Vaughan ($1,297,971) and Stouffville ($1,293,839).
“Home sales have been impacted by both the affordability challenge presented by mortgage rate hikes and the psychological effect wherein home buyers who can afford higher borrowing costs have put their decision on hold to see where home prices end up,” says TRREB President Kevin Crigger. He predicts current market conditions will remain in place during the slower summer months. “Once home prices stabilize, some buyers will re-enter the market despite higher borrowing costs.”
While the number of transactions in June was down year-over-year, the number of new listings was little changed over the same period, creating a more balanced market that has resulted in a more moderate annual pace of price growth.
“Listings will be an important indicator to watch over the next few months,” says TRREB Chief Market Analyst Jason Mercer. “With the unemployment rate low, the majority of households aren’t in a position where they need to sell their home. If would-be sellers decide to take a wait-and-see attitude over the next few months, it’s possible that active listings could trend lower as well. This could cause market conditions to tighten somewhat, providing some support for home prices.”
