Move Smart Toronto Area Real Estate Market Report: June 2022
Sales of homes (low-rise singles, semis, townhouses, etc.) in the Greater Toronto Area (GTA) in May 2022 were down 40% from the same month last year and well below historical levels for the month of May. It should also be noted that sales were also down month over month compared to April. Normally we expect an upward trend in sales from April to May, so the 2020 and 2021 sales trends below are not typical of the housing market.
New home listings in May were flat compared to a year ago, but well below historical volumes of new listings for the month of May.
The number of homes available for sale (“active listings”) is up 23% from the same month last year, but remains 35% below pre-Covid levels in 2019.
The Months of Inventory (MOI) ratio looks at the number of homes available for sale in a given month divided by the number of homes sold in that month. It answers the following question: if no more homes were on the market, how long would it take for all existing homes on the market to sell given the current level of demand?
The higher the MOI, the colder the market. A balanced market (a market where prices neither rise nor fall) is one where the MOI is between four and six months. The lower the MOI, the faster we expect prices to rise.
While the current level of MOI gives us clues as to how competitive the market is on the ground today, the direction in which it is moving also gives us clues as to where the market might be headed.
From below a very competitive MOI of 1 just two months ago, Toronto-area home inventory rose to 2 MOI in May.
The share of homes selling for more than the owner’s asking price fell to 56% in May.
The average home price fell month-over-month to $1,444,169 in May 2022 and is well below the February high of $1,679,429. Compared to last year, the average price in May is up 10%.
The median home price in May was $1,251,000, up 10% from a year ago but below the high of $1,485,000 reached in February.
The median is calculated by ranking all sales prices in a given month, then selecting the price that falls in the middle of that list, so that half of all home sales were above that price and the other half below this price. Economists often prefer the median price to the average because it is less sensitive to large increases in the sale of high-end or low-end homes in a given month, which can skew the average price.
Sales of condos (condominiums, including condominium apartments, condominium townhouses, etc.) in the Toronto area in May 2022 were down 35% from last year and well below volumes of pre-Covid sales for the month of May.
New condominium listings were up 3% in May from a year ago and well above historical listing volumes for the month of May.
The number of condos available for sale at the end of the month, or active listings, increased by 21% compared to last year.
The MOI rose to 2.5 in May.
The share of condominiums sold above the asking price fell to 50% in May.
The average condo price in May fell to $795,409, down from a high of $840,444 in March. The average price is up 13% compared to last year. The median price for a condo in May was $720,000, up 13% from a year ago, but down from the $777,000 from the March high.
While average prices increased year-over-year (YOY) across all five GTA regions, sales were down significantly and inventory levels were well above last year, indicating some market downturn.
While condominium sales were down in the GTA, average prices continue to increase by double digits in all five regions. Current MOI levels are well above 1 in the GTA, signaling a slowdown in the market.
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Greater Toronto Area Market Trends
City of Toronto Market Trends
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Halton Region Market Trends
Peel Region Market Trends
Durham Region Market Trends
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