Home sales in May 2022 39% lower than last year, prices almost 10% higher: Toronto board – Toronto

TORONTO — The Great Toronto Area housing market is becoming more balanced as home sales fell 39 percent in May from a year earlier and prices rose nearly 10 percent, the Toronto Regional Real Estate Board said Friday.

Ontario’s board found last month’s home sales totaled 7,283, down from 11,903 in May 2021 and 7,989 last April.

The board attributed the revenue decline to higher borrowing costs driven by interest rate hikes, accompanied by inflationary pressures that weighed on spending.

However, the board found that buyers had more bargaining power last month as the market began to equilibrate.

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Home sales in April 2022 down 41% compared to last year, down 27% since March: TRREB

“After a strong start to the year, the current cycle of rate cuts has changed market dynamics, with many potential homebuyers delaying their purchase,” TRREB chief market analyst Jason Mercer said in a press release.

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In recent weeks, brokers have noticed that the pace of sales is not as high as it was at the beginning of the year. Many sellers are now getting fewer offers and bidding wars for their homes, forcing some to accept a lower price than they may have seen months ago.

The median home price reached $1,212,806 in May, up more than nine percent from $1,108,124 in the same month last year.

However, the median home price was still below $1,253,567 in April.

“There is now a psychological aspect where potential buyers are waiting for a bottom in price. This will likely continue throughout the summer,” Kevin Crigger, the president of TRREB, predicted in a release.

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March house prices in Toronto fell from February, but still higher than last year: TRREB

The average price of a detached home in the city of Toronto, which is associated with area code 416, is up 12 percent since last year to more than $1.9 million in May, while semi-detached homes are up about eight percent to more than $1.4 million.

Townhouses were up about 10 percent to a total of just over $1 million, while apartments also saw a 10 percent increase to an average of $793,000.

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Detached homes rose about eight percent to more than $1.4 million in the 905, an area around Toronto that includes municipalities like Vaughan, Mississauga and Brampton.

Semi-detached homes and townhouses in the area rose 14 percent each to over $1 million and $950,000, respectively.

Apartments in the 905 saw a 20 percent growth to an average of $722,000.

The number of houses to choose from had changed little compared to a year ago. In May, there were 18,679 new listings, down less than one percent from 18,593 in the same month a year earlier.

Looking ahead, Crigger doesn’t think the changing market will lead to a decline in housing demand.

“As home buyers adjust to higher borrowing costs, housing demand will be supported by extremely low unemployment, high job opportunities, rising incomes and record immigration.”

© 2022 The Canadian Press

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