The market has taken a hit – and it's a big one
Toronto home sales fell by 41% in June compared to last year, the Toronto Regional Real Estate Board announced on Wednesday, with 6,474 homes changing hands last month compared to the 11,053 in June 2021.
Economists and realtors held rising interest and mortgage rates responsible, alongside the 40-year-record-high 7.7% inflation rate. The landscape created by these conditions was one in which prospective buyers held much less purchasing power, with homes sitting for sale far longer without anyone bidding over them as they would have months ago.
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While the region’s board also blamed seasonal trends and higher borrowing costs for weighing down June sales, it clarified that year-over-year sales suggested the current, cooler market conditions were here to stay.
The average home price in the region was $1,146,254 in June, a 6% drop from the previous month and a 5% increase from June last year. The board observed year-over-year increases in home prices across every category of housing.
Average prices in the City of Toronto, excluding suburbs, reached $1,737,012 for detached homes, $1,027,050 for townhouses, and $771,267 for condos. In suburban regions, the average price was more than $1,361,862 for a detached home, $906,311 for a townhouse, and $692,598 for a condo.
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New listings rose by only 1% to 16,347 from June 2021 but dropped by 12% on a month-on-month basis. Real estate agents have noticed that many have held off listing their properties, preferring instead to wait for a market turn.
