Canada’s strategy to tackle inflation by raising interest rates is working, at least in the real estate market. The June 2022 real estate market statistics for Toronto and the GTA paint a picture of declining demand, increasing supply and decreasing prices.
It’s easy to misunderstand or mislead with statistics. Last month, we saw too many REALTORS and the media take numbers out of context to get great headlines or focus on year-over-year stats, which tell a very different story than what’s been happening these past few months.
A quick glance at the statistics shows that:
- The number of sales was down 41% vs. June 2021 across the GTA
- The average selling price of $1,146,254 was up 5.3% vs June 2021, but continuing a downward trend since February 2022
- The number of properties actively listed for sale was up 42.5% vs June 2021
- It took longer to sell a home – on average, 24 days vs 17 days in 2021
- The numbers are worse in the 905 (the suburbs) than the 416 (City of Toronto)
On average, home prices in Toronto for June 2022 are back to July 2021 levels.
When we look at the activity in the real estate market in June 2022 vs. February 2022 (when the Toronto real estate market reached its peak), here’s what we see:
- Overall, prices in Toronto are down 4.85% since February, with East Toronto prices down the most, at almost 11%
- Detached home prices took the biggest hit, decreasing 16.25% since February.
- Semi-detached and rowhouse prices were down around 10% since February.
- Condos and condo townhouses saw the smallest decline, with average condo prices decreasing by 6% and townhouses decreasing by 7%.
The average price of a home in the GTA decreased by $188,290 between February and June 2022.
The Good News (if there is any):
- For Sellers: Homes are still selling! Yes, they need to be priced right and all the bells and whistles like staging, photography and marketing matter more than ever – but if you need to sell your home right now, it can be done.
- For first-time Buyers: While still rising, interest rates are lower now than expected later this year; coupled with lower prices, there are some great opportunities for first-time buyers who were shut out of the market earlier this year.
- For upgraders: While a 4.85% decrease in prices will impact how much you sell your current home for, it’ll also mean you’ll pay less for the home you buy. If you’re selling a 1 million dollar home and upgrading to a 1.5 million home, you could end up almost $25K ahead. If you’re selling a condo and buying a detached house, you’ll get an extra bonus there too, as condo prices haven’t decreased as much as detached house prices. Prices are relative – and as long as you’re selling in the same market, it doesn’t matter if you don’t get a February price for your current home – you won’t be paying February prices for your new home either.