Toronto Real Estate Continues to Cool Down in June

What happened in June?

Rising interest rates combined with some buyers taking a wait-and-see approach continue to impact the volume of home sales.
Sales totalled 6,474 - down by 41% compared to last years strong result.
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% above the June 2021 level, but continued to trend lower on a monthly basis.
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 wherein home buyers who can afford higher borrowing costs have put their decision on hold to see where home prices end up. Expect current market conditions 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. This has provided more balance in the market, resulting in a more moderate annual pace of price growth.
The following charts compare 2022's reported monthly sales, number of new listings, and average resale home price with the previous three years.

2019-2022 Toronto + GTA sales volume

Source: Toronto Regional Real Estate Board

2019-2022 Toronto + GTA number of new listings

2019-2022 Toronto + GTA average resale home price

"Listings will be an important indicator to watch over the next few months. With the unemployment rate low, the majority of households aren't in a position where they need to sell their home. If would-be sellers decide to take a wait-and-see attitude over the next few months, it's possible that active listings could trend lower as well. This could cause market conditions to tighten somewhat, providing some support for home prices," said TRREB Chief Market Analyst Jason Mercer.

Interested in digging into the data? You can view the June 2022 housing market charts here.

If you have any questions or would like more information on recent home sales in your specific neighbourhood, don't hesitate to contact us.