Toronto Market Update – July 2022

Posted by Nutan Brown on Monday, July 11th, 2022 at 8:44am.

Toronto home sales dropped by just over 41% last month compared to the same time last year as rising borrowing costs cooled demand for properties on the market.

About 6,474 homes changed hands last month, down from 11,053 during the prior June, the Toronto Regional Real Estate Board said. June sales were also down compared to May.

TRREB President Kevin Crigger says that "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."

It's expected that current market conditions will remain in place during the summer months, but home prices should stabilize, bringing buyers back into the fold despite high borrowing costs.

Though homes sold for less on average in June than those that changed hands in May, prices were still up from last year.

The average home price rose to $1,146,254 last month, a roughly 5% increase from June 2021. June’s average was an almost 6% drop from May 2022. The increases in prices were seen across every housing category in Toronto.

As prices continue to increase, some buyers are waiting on the sidelines to see if the market stabilizes before making a move. Sellers are also keeping a close eye on the market, hoping to maximize profit when selling their home.

Stay tuned to see how the market develops as we move deeper into the summer, and as always feel free to contact me if you have any questions!

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