Housing prices in Toronto keep falling amid July’s sales decline of 47%
We can see quite a calm summer so far in the Greater Toronto Area real estate market.
According to the recent report by the Toronto Regional Real Estate Board (TRREB), home sales were down by 47.4% annually in July. A monthly comparison shows a drop by 24.1%. Seasonally adjusted sales fell by 0.3% from June.
As certain buyers are priced out of the market right now, some potential sellers decide to wait with listing their homes for sale.
Last month, new listings went down by 4.1% on a year-over-year basis. TRREB believes they will keep following sales tendencies next year as well.
As the competition among buyers is weaker now, the average home price of a property continued to fall from its February peak, stopping at $1,074,754 in July. The largest changes were reported in the sector of single-family houses.
“Amid such sharp rate hikes over a short period it’s the consumer sentiment that has changed, not the market fundamentals,” – noted Kevin Crigger, president of TRREB.
In his opinion, the federal government has to introduce new measures for improving housing affordability amid growing borrowing costs and high inflation.
In addition to it, he criticized the latest hikes to municipal development charges.
“City of Toronto Council need to review its new 46% rise to development charges, pushing the average amount of all government charges to as much as $350,000+ for every new detached house and more than $180,000 for a new condominium,” – Crigger added.
TRREB MLS System Sales and Average Price by Home Type July 1-31, 2022
| Sales | Average Price | |||||
| 416 | 905 | Total | 416 | 905 | Total | |
| Detached Houses | 477 | 1,726 | 2,203 | 1,515,763 | 1,320,269 | 1,362,598 |
| Yr./Yr. % | -43.6% | -46.9% | -46.2% | -7.3% | -1.9% | -3.1% |
| Semi-Detached Houses | 177 | 297 | 474 | 1,268,630 | 963,994 | 1,077,750 |
| Yr./Yr. % | -36.1% | -49.6% | -45.3% | 5.1% | 2.2% | 4.9% |
| Townhouses | 200 | 616 | 816 | 963,545 | 884,533 | 903,899 |
| Yr./Yr. % | -45.2% | -53.3% | -51.6% | 7.6% | 5.5% | 6.3% |
| Condo Appartment | 963 | 402 | 1,365 | 744,092 | 659,820 | 719,273 |
| Yr./Yr. % | -44.9% | -52.9% | -47.5% | 4.3% | 11.9% | 6.9% |