What’s Happening In The Market
The Toronto Regional Real Estate Board (TRREB) has released the MLS sales data for May 2022. With 7283 home sales reported, transactions decreased 38.8% year-over-year and 9% from the previous month.
New listings were up slightly from the same time last year. At month’s end, there were 15,433 active listings, a gain of 26% from a year earlier, and representing a 2.1-month supply as we head into June. The number of months of inventory remains at its highest levels in two years and is trending upwards.
More balanced conditions are providing buyers with more options and improved negotiation power. As a result, while average selling prices are up year-over-year, they have come down on a month-to-month basis. The average sales price of $1,212,806 represents a 9.4% increase compared to last year, but a decline of roughly $40,000 from April. The MLS Home Price Index (HPI) Composite Benchmark was up 23.9% (+20% in Toronto) from May 2021.
Looking at price by housing type, detached homes sold for an average of $1,549,498. This is a year-over-year increase of 9.5% and a month-over-month decline of 4.8%. The average price for semi-detached homes was $1,204,893 (+13.2% /-4.3%), townhomes rose on average to $977,194 (+12.7% /-4.1%), and the average price of condos was $770,894 (+12.9% /-2.4%). The average May sale took place in 12 days on the market, up from 11 days in May, and at 3% over the listing price, which is down from 7% in May.
Recent increases in lending rates, including the 50-basis point hike on June 1st, are affecting buyers, with many waiting to see the overall impact on housing prices. That said, as buyers adjust to higher borrowing costs and an improved negotiating position, we anticipate demand for housing will be supported by a strong job market and rising immigration. For the latest intel in a rapidly changing market, please speak with a member of our team.
For over 40 years, our clients have trusted us to minimize risk, offer unbiased opinions, and ensure their best interests are served. Contact us today to talk about your needs, by emailing us at evan@christensengroup.ca or calling us at 416-441-2888 ext. 772.
