TORONTO, June 03, 2022 (GLOBE NEWSWIRE) — Housing market conditions in the Greater Toronto Area (GTA) have continued to evolve in response to rising borrowing costs. Similar to the April results, May 2022 sales declined on a monthly and yearly basis. Conversely, active listings at the end of May were up month-over-month and year-over-year. More balanced market conditions gave buyers greater bargaining power. As a result, while benchmark and average home prices have increased significantly from a year ago, sales prices have trended lower month over month.
“The Bank of Canada’s rate hikes, including the 50 basis point hike on June 1, are having a short-term impact on homebuyers. There is now a psychological aspect where potential buyers are waiting for a price bottom. This will probably continue all summer. However, as homebuyers adjust to higher borrowing costs, housing demand will be supported by extremely low unemployment, high vacancies, rising incomes and record immigration,” said TRREB President Kevin Crigger.
GTA REALTORS® reported 7,283 sales through TRREB’s MLS® system in May 2022, down 38.8% from May 2021 and down 9% from April 2022. The number of new listings in May was similar to last year and slightly increased month after month. With declining sales and a flat or slightly increasing trend in new listings, the number of active listings increased 26% year over year.
Market conditions remained tight enough to support an overall average selling price of $1,212,806 for May 2022, representing an annual growth rate of 9.4%. The composite benchmark MLS® Home Price Index also rose 23.9% year over year. Month over month, both price measures were lower, reflecting more balanced market conditions.
“Price trends seen over the past three months – both in terms of moderating annual growth rates and recent month-on-month declines – are in line with TRREB forecasts for 2022. After a good At the start of the year, the current rate-tightening cycle has changed the dynamics of the market, with many potential buyers putting their purchase on hold. This has led to a better balance in the market, giving buyers greater bargaining power.” , said Jason Mercer, chief market analyst TRREB.
“The recent elections showed that the upper levels of government understand the need for more housing to support regional growth. Approval of new and more diverse housing types is done at the municipal level, subject to provincial laws and regulations. It will be important to understand the position of local policy makers as we head into the fall local elections. The short-term impact of higher interest rates will not be with us forever. Supply remains the long-term challenge,” said 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 and 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 | |||||||||||||||
| year/year. % To change | -34.8 | % | -42.6 | % | -40.9 | % | 11.5 | % | 7.8 | % | 9.5 | % | |||||||||
| Paired | 316 | 436 | 752 | 1,426,273 | 1,044,443 | 1,204,893 | |||||||||||||||
| year/year. % To 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 | |||||||||||||||
| year/year. % To change | -47.9 | % | -40.8 | % | -42.4 | % | 10.4 | % | 13.8 | % | 12.7 | % | |||||||||
| Condominium apartment | 1,264 | 584 | 1,848 | 793 124 | 722 778 | 770 894 | |||||||||||||||
| year/year. % To change | -32.5 | % | -29.5 | % | -31.6 | % | 10.5 | % | 19.7 | % | 12.9 | % | |||||||||
|
May 2022 Year-over-year percent change in HPI MLS® |
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| Composite (all types) | Detached Single Family | Attached Single Family | Townhouse | Apartment | |||||||||||||||||
| TRREB Total | 23.89 | % | 22.83 | % | 23.64 | % | 24.93 | % | 28.29 | % | |||||||||||
| Halton Region | 16.95 | % | 4:32 p.m. | % | 19.28 | % | 13.51 | % | 24.53 | % | |||||||||||
| Region of Peel | 28.66 | % | 27.73 | % | 28.07 | % | 29.80 | % | 35.11 | % | |||||||||||
| City of Toronto | 20.04 | % | 5:30 p.m. | % | 3:31 p.m. | % | 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 | % | 10:35 p.m. | % | 23.34 | % | 33.84 | % | 46.69 | % | |||||||||||
| South Simcoe County1 | 24.89 | % | 24h00 | % | 27.76 | % | 28.87 | % | 31.92 | % | |||||||||||
| Source: Toronto Regional Real Estate Plank 1South Simcoe includes Adjala-Tosorontio, Bradford West Gwillimbury, Essa, Innisfil and New Tecumseth |
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Please note that the methodology used to calculate the MLS® PPI has changed. For more information, click on HERE.
| TRREB MLS® System Year-to-Date Sales and Average Price Summary, 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 and 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 | ||||||
| year/year. % To change | -25.8 | % | -36.6 | % | -34.5 | % | 14.4 | % | 22.1 | % | 20.9 | % |
| Paired | 1,362 | 2,362 | 3,724 | 1,490,389 | 1,173,963 | 1,289,691 | ||||||
| year/year. % To 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 | ||||||
| year/year. % To change | -32.7 | % | -32.2 | % | -32.3 | % | 17.8 | % | 25.7 | % | 23.8 | % |
| Condominium apartment | 8,124 | 3,810 | 11,934 | 808 540 | 740 306 | 786 756 | ||||||
| year/year. % To change | -23.5 | % | -20.0 | % | -22.4 | % | 16.4 | % | 25.6 | % | 18.9 | % |
Source: Toronto Regional Real Estate Board
| TRREB MLS® seasonally adjusted sales and average price1 | |||||||
| Sales | % change from month to month. | Average price | % change from month to month. | ||||
| May 21 | 10,599 | -3.9 | % | $ | 1,072,561 | 1.7 | % |
| June 21st | 10,015 | -5.5 | % | $ | 1,074,565 | 0.2 | % |
| July 21 | 9,685 | -3.3 | % | $ | 1,083,025 | 0.8 | % |
| 21st of August | 9,094 | -6.1 | % | $ | 1,111,997 | 2.7 | % |
| September ’21 | 8,977 | -1.3 | % | $ | 1,135,667 | 2.1 | % |
| October ’21 | 9,624 | 7.2 | % | $ | 1,152,123 | 1.4 | % |
| November ’21 | 9,196 | -4.4 | % | $ | 1,179,538 | 2.4 | % |
| December ’21 | 8,942 | -2.8 | % | $ | 1,209,971 | 2.6 | % |
| January 22 | 8,689 | -2.8 | % | $ | 1,272,867 | 5.2 | % |
| February 22 | 9,351 | 7.6 | % | $ | 1,288,923 | 1.3 | % |
| March 22 | 8,011 | -14.3 | % | $ | 1,258,201 | -2.4 | % |
| April 22 | 6,842 | -14.6 | % | $ | 1,214,077 | -3.5 | % |
| May 22 | 6,207 | -9.3 | % | $ | 1,176,368 | -3.1 | % |
| Source: Toronto Regional Real Estate Board; Seasonal adjustment of the AIT. 1 Preliminary seasonal adjustment undertaken by the Canadian Real Estate Association (CREA). Removing normal seasonal variations allows for more meaningful analysis of monthly changes and underlying trends. |
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Genevieve Grant, Public Affairs Specialist [email protected] 416-443-8159
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