Toronto Market Update – May 2022

Posted by Nutan Brown on Saturday, May 7th, 2022 at 10:43am.

There were signs of cooling in the Toronto housing market last month as sales dropped by 41.2% compared to the same time last year.

According to the latest TRREB report, there were 8,008 sales across the region, down from 13,613 during the same time last year. This represents a 27% drop compared to the previous month of 10,939 sales - an unusual trend in spring, which is traditionally the busiest season in the real estate market.

The board attributed this decline to homebuyers who are taking a break from the market as interest rates climb and reduce their buying power.

"It certainly appears that the Bank of Canada is achieving its goal of slowing consumer spending as it fights high inflation," TRREB President Kevin Crigger said in a release. "Negotiated mortgage rates rose sharply over the past four weeks, prompting some buyers to delay their purchase."

Prices were still climbing on a yearly basis, up 15% over April 2021. But the average selling price dropped 3.6% compared to the previous month, representing the second consecutive month-over-month decline.

The average selling price for all types of houses and condos was $1.25 million in April, compared to $1.3 million in March and $1.09 million a year ago.

It is anticipated that there will be enough competition between buyers to support continued price growth relative to 2021, but the annual pace of growth will moderate in the coming months 

Stay tuned to find out how the housing market develops, and as always feel free to reach out if you have any questions!

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