by Nutan Brown
on Monday, June 13th, 2022 at 3:22pm.
The Toronto housing market has shown signs of balancing out as May home sales dropped 38.8% and prices rose by 9.4% compared to last year, according to the latest TRREB report.
May was the third consecutive month that home sales dropped, with 7,283 total sales compared to 11,903 in May 2021 and 7,989 this past April.
The drop in sales can be attributed to higher borrowing costs caused by the interest rate hikes, coupled with inflationary pressures that weighed on spending.
The average home price hit $1,212,806 in May, up by almost 10% compared to $1,108,124 during the same month last year.
Realtors have noticed that homes are not being snatched up as quickly as they were earlier in the year. Bidding wars have also cooled down. With fewer offers on the table, home sellers are starting to accept a lower price than they may have seen a month ago.
“There is now a psychological aspect where potential buyers are waiting for a bottom in price. This will likely continue through the summer,” Kevin Crigger, TRREB’s president, predicted in a release.
The number of homes people had to choose from was very comparable to the same time last year. May saw 18,679 new listings, while 18,593 properties hit the market during the same month in 2021.
With the summer market just around the corner, will the Toronto real estate market heat back up? Stay tuned to find out! As always, feel free to reach out if you have any questions.