The housing market in the Greater
Toronto Area (GTA) has continued to change as a result of increased interest
rates. May 2022 sales were down on a monthly and annual basis, similar to April's
numbers. Active listings, on the other hand, were up month over month and year
over year at the end of May. Buyers now have more negotiation leverage thanks
to more balanced market conditions. As a result, while benchmark and average
home prices increased significantly year over year, selling prices decreased
month over month.
"Rate hikes by the Bank of
Canada, including the 50-basis-point hike on June 1, have a short-term impact
on property buyers. Potential purchasers are now waiting for a price bottom,
which is a psychological factor. This is expected to persist throughout the
summer. Housing demand will be underpinned by extremely low unemployment,
significant job vacancies, rising salaries, and record immigration as home
purchasers adjust to higher borrowing rates, according to TRREB President Kevin
Crigger.
In May 2022, GTA REALTORS® reported
7,283 sales through TRREB's MLS® System, down 38.8 percent from May 2021 and
nine percent from April 2022. The number of new listings in May was similar to
last year's level and increased month over month. The number of active listings
increased by 26% year over year, despite sales being down and new listings
being flat to slightly up.
Market conditions were still tight
enough to support an overall average selling price of $1,212,806 in May 2022,
reflecting a 9.4% yearly increase. The MLS® Home Price Index Composite
Benchmark increased by 23.9 percent year over year. Both price measures were
down month over month, indicating more balanced market conditions.
"Price trends observed over the
past three months – both in terms of slowing yearly growth rates and recent
month-to-month declines – are consistent with TRREB's prediction for 2022.
Following a solid start to the year, the current rate tightening cycle has
altered market dynamics, with many potential house purchasers deferring their
purchase. "As a result, the market has become more balanced, giving buyers
more bargaining power," said TRREB Chief Market Analyst Jason Mercer.
"Recent elections have demonstrated
that senior government officials recognise the need for greater housing to
sustain regional prosperity. New and more diverse dwelling styles are approved
at the municipal level, in accordance with provincial rules and regulations. As
we approach the municipal elections in the autumn, it will be critical to grasp
the positions of local politicians. Higher interest rates will not have an
indefinite effect in the short run. "Long-term supply remains a
challenge," stated TRREB CEO John DiMichele.
Summary of TRREB MLS® System Sales and Average
Price May 1–31, 2022 |
||||||
|
2022 |
2021 |
||||
|
Sales |
Average
Price |
New Listings |
Sales |
Average
Price |
New Listings |
City of Toronto ("416") |
2,679 |
1,233,748 |
6,877 |
4,101 |
1,117,457 |
7,052 |
Rest of GTA ("905") |
4,604 |
1,200,621 |
11,802 |
7,802 |
1,103,219 |
11,541 |
GTA |
7,283 |
1,212,806 |
18,679 |
11,903 |
1,108,124 |
18,593 |
TRREB MLS® System Sales & Average Price by
Home Type May 1–31, 2022 |
||||||
|
Sales |
Average Price |
||||
|
416 |
905 |
Total |
416 |
905 |
Total |
Detached |
814 |
2,552 |
3,366 |
1,914,890 |
1,432,951 |
1,549,498 |
Yr./Yr. % Change |
-34.8% |
-42.6% |
-40.9% |
11.5% |
7.8% |
9.5% |
Semi-
Detached |
316 |
436 |
752 |
1,426,273 |
1,044,443 |
1,204,893 |
Yr./Yr.
%
Change |
-29.1% |
-44.4% |
-38.9% |
7.5% |
14.1% |
13.2% |
Townhouse |
267 |
984 |
1,251 |
1,045,874 |
958,558 |
977,194 |
Yr./Yr.
%
Change |
-47.9% |
-40.8% |
-42.4% |
10.4% |
13.8% |
12.7% |
Condo Apartment |
1,264 |
584 |
1,848 |
793,124 |
722,778 |
770,894 |
Yr./Yr.
%
Change |
-32.5% |
-29.5% |
-31.6% |
10.5% |
19.7% |
12.9% |
May 2022 Year-Over-Year Per Cent Change in the
MLS® HPI |
||||||
|
Composite (All
Types) |
Single-Family Detached |
Single-Family Attached |
Townhouse |
Apartment |
|
TRREB Total |
23.89% |
22.83% |
23.64% |
24.93% |
28.29% |
|
Halton Region |
16.95% |
16.32% |
19.28% |
13.51% |
24.53% |
|
Peel
Region |
28.66% |
27.73% |
28.07% |
29.80% |
35.11% |
|
City
of
Toronto |
20.04% |
17.30% |
15.31% |
24.70% |
26.50% |
|
York
Region |
28.45% |
26.47% |
30.53% |
30.52% |
33.38% |
|
Durham Region |
28.50% |
28.25% |
28.48% |
30.42% |
35.76% |
|
Orangeville |
23.07% |
22.35% |
23.43% |
33.84% |
46.69% |
|
South Simcoe County1 |
24.89% |
24.00% |
27.76% |
28.87% |
31.92% |
|
Source: Toronto Regional
Real Estate Board 1South Simcoe includes Adjala-Tosorontio, Bradford West Gwillimbury, Essa, Innisfil and New Tecumseth |
Year-to-Date Summary of TRREB MLS® System Sales
and Average Price May 2022 | ||||||
| 2022 | 2021 | ||||
| Sales | Average
Price | New Listings | Sales | Average
Price | New Listings |
City of Toronto ("416") | 15,129 | 1,202,309 | 27,597 | 20,283 | 1,046,292 | 30,031 |
Rest of GTA ("905") | 25,716 | 1,317,557 | 51,699 | 38,676 | 1,086,795 | 56,734 |
GTA | 40,845 | 1,274,869 | 79,296 | 58,959 | 1,072,861 | 86,765 |
YTD TRREB MLS® System Sales & Average Price
by Home Type May 2022 |
||||||
|
Sales |
Average Price |
||||
|
416 |
905 |
Total |
416 |
905 |
Total |
Detached |
4,030 |
13,922 |
17,952 |
1,949,769 |
1,605,461 |
1,682,754 |
Yr./Yr. % Change |
-25.8% |
-36.6% |
-34.5% |
14.4% |
22.1% |
20.9% |
Semi-
Detached |
1,362 |
2,362 |
3,724 |
1,490,389 |
1,173,963 |
1,289,691 |
Yr./Yr. % Change |
-26.7% |
-34.8% |
-32.0% |
14.6% |
27.0% |
22.7% |
Townhouse |
1,508 |
5,387 |
6,895 |
1,096,537 |
1,051,374 |
1,061,252 |
Yr./Yr. % Change |
-32.7% |
-32.2% |
-32.3% |
17.8% |
25.7% |
23.8% |
Condo Apartment |
8,124 |
3,810 |
11,934 |
808,540 |
740,306 |
786,756 |
Yr./Yr. % Change |
-23.5% |
-20.0% |
-22.4% |
16.4% |
25.6% |
18.9% |
Source:
Toronto Regional Real Estate Board