Toronto Real Estate Market Report | July 2022

The summer slowdown is real for the Toronto real estate market this July.

While we normally experience a reduction in sales volume during June/July/August, this seems to be heightened even more this year as a result of the shock the market experienced when the Bank of Canada raised interest rates to levels not seen since 2013.

To summarize what happened in July as best as possible:

• Home sales were down 47% compared to July 2021
• New listings declined by 4% vs. July 2021, indicating we're having an even slower summer market than is normal at this time of year
• Overall the market has become more balanced than the preceding 2 years with more moderate levels of price growth
• Some areas are seeing increased inventory levels which is providing buyers more purchasing power
• Active listings are up by almost 58% compared to last year which shows there's more inventory on the market, however this isn't translating to an increase in sales which shows that many seller's aren't willing to negotiate (yet)
• With interest rates reaching a new high not seen in over a decade, many prospective home buyers are searching for more affordable options which is why the condo & townhouse sectors are performing so well
• Still generally there is uncertainty about where the market is headed as the Bank of Canada has not made it clear whether they will continue to increase rates or leave them at current levels for a while

• Sales | 4912 (-47.4% vs. 2021)
• New Listings | 12,046 (-4.1% vs. 2021)
• Active Listings | 15,334 (+57.6% vs. 2021)
• Average price | $1,074,754 (+1.2% vs. 2021)
• Detached | Average price = $1,515,763 (-7.3%) | Sales = 477 (-43.6%)
• Semi-Detached | Average price = $1,268,630 (+5.1%) | Sales = 177 (-36.1%)
• Townhouse | Average price = $963,545 (+7.6%) | Sales = 200 (-45.2%)
• Condo | Average price = $744,092 (+4.3%) | Sales = 963 (-44.9%)

It will be interesting to see if this trend persists in August or if more buyers/sellers shift to accommodate the current market conditions in preparation for the busier fall months.

Have any questions about what's going on with the market?

Feel free to message me on Instagram @TorontoRealEstate.ca !

Rylie C.