HOME PRICES DROP YET AGAIN

July 12, 2022

June sales of Toronto homes fell by just over 41 per cent compared with the same month last year as higher borrowing costs weighed on the market, the region’s real estate board states.

 

About 6,474 homes changed hands last month, down from 11,053 during the prior June, the Toronto Regional Real Estate Board said. June sales were also down compared to May.

 

Home sales have been impacted by both the affordability challenge presented by mortgage rate hikes and the psychological effect wherein homebuyers who can afford higher borrowing costs have put their decision on hold to see where home prices end up. This is all due to several of the country’s biggest housing markets – Vancouver, Toronto and Calgary – have eased in recent months. 

 

June sales of Toronto homes fell by just over 41 per cent compared with the same month last year as higher borrowing costs weighed on the market, the region`s real estate board said Wednesday.  About 6,474 homes changed hands last month, down from 11,053 during the prior June (TREBB).  

 

While the board attributed some of the decrease between May and June to seasonal trends, it said the figure and year-over-year sales suggest the current, cooler market conditions will persist. April’s home sales are down 41% from last year, 27% since March. 

 

Though homes sold for less on average in June than those that changed hands in May, prices were still up from last year.  The average home price in the region stretched to $1,146,254 last month, a roughly five per cent increase from June 2021.  As prices crept up from June 2021, real estate agents have noticed many have held off listing their properties, preferring to wait for the market to turn again.