The interest rate hikes by the Bank of Canada are reflected in the June 2022 home sales report released by Toronto Regional Real Estate Board.
A total of 6,474 homes were sold last month. This is down by 41 percent compared to June 2021. Though the house price increased by 5.3 per cent above the June 2021 level, the average selling price declined 3% compared to last month.
Credit: TRREB
Explaining the reasons for the decline, TRREB President Kevin Crigger said in a statement, “Home sales have been impacted by both the affordability challenge presented by mortgage rate hikes and the psychological effect wherein home buyers who can afford higher borrowing costs have put their decision on hold to see where home prices end up. Expect current market conditions to remain in place during the slower summer months. Once home prices stabilize, some buyers will re-enter the market despite higher borrowing costs.”
Report Highlights:
Credit: TRREB
- Total residential transactions declined -41.4% on a year-over-year basis and declined -4.7% compared to May 2022
- The average selling price increased 5.3% compared to June 2021 ($1,088,991 in June 2021 vs $1,146,254in June 2022), but seasonally adjusted average selling price declined -3% ( $1,175,111 in May 2022 vs $1,139,957 in June 2022).
- Total Condo Apartment Sales declined by -15.6%, but prices increased by 22.4% on a year-over-year basis ($64,5503 in June 2021 vs $790,398 in June 2022)
- The average rental price for a 1-bedroom apartment increased from $1820 to $2145, an increased of 17.9% compared to last year
A detailed report is given here.
View Comments (1)
The fact that these home prices have declined is quite a surprise to me. I was sure the prices would go up, but that has not been the case.