Toronto home sales plunge 41 per cent

July 18, 2022



Higher borrowing costs continued to impact Greater Toronto Area home sales in June 2022, according to the Toronto Regional Real Estate Board (TRREales totalled 6,474—down 41 per cent compared to strong results in 2021. The number of transactions was also down compared to May 2022, but this is often the case due to the seasonal nature of the market.
The average selling price, at $1,146,254, remained 5.3 per cent above the June 2021 level, but continued to trend lower on a monthly basis. The composite benchmark was up by 17.9 per cent year-over-year, but also experienced a month-over-month dip compared to May. Annual price growth was driven more so by less expensive market segments, including townhouses and condominium apartments.
Home sales have been impacted by both the affordability challenge presented by mortgage rate hikes and the psychological effect of homebuyers who can afford higher borrowing costs putting their decision on hold to see where home prices end up. Current market conditions are expected to remain in place during the slower summer months.
Once home prices stabilize, some buyers will re-enter the market despite higher borrowing costs, said TRREB President Kevin Crigger. While the number of transactions was down year-over-year, the number of new listings was little changed over the same period—creating greater balance in the market and resulting in a more moderate annual pace of price growth.