Toronto and Etobicoke Real Estate Market Update for June 2022
I hope you enjoyed a great Canada Day long weekend! Can you believe we are half-way through 2022?
As the Toronto and Etobicoke Real Estate market continues to shift you may be wondering what we can expect throughout the summer and fall. Read on to find out more in this month’s edition of the Toronto and Etobicoke Real Estate Market Update for June 2022.
Higher borrowing costs continued to impact home sales in June 2022. Sales totalled 6,474 – down by 41% compared to last year’s strong result. The number of transactions was also down compared to May 2022, but this is often the case due to the seasonal nature of the market.
The average selling price, at $1,146,254, remained 5.3% above the June 2021 level, but continued to trend lower on a monthly basis. Annual price growth was driven more so by less expensive market segments, including townhouses and condominium apartments.
“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,” said TRREB President Kevin Crigger.
We saw interest rates and inflation continue to rise, creating more balanced market conditions in Toronto and Etobicoke. However, as purchasers adjust to the increase in borrowing costs later this year, demand for housing will continue, supported by strong employment numbers, immigration to major urban centres and record-high savings.
Toronto, rents have skyrocketed by nearly 17% annually, creating the potential for increased demand from renters looking for the stability and economic advantages of home ownership in the coming months.
In addition, the pipeline of potential buyers remains strong, with younger millennials poised to become homeowners in the near and medium term, comprising a significant portion of the population in our largest cities. Toronto’s population between ages 25-40 is 22%.
What does this mean for you? If you are looking to sell, it is imperative to price your home right for this balanced market. Although some houses are still seeing bidding wars it really comes down to the presentation of your home, the correct price and marketing strategy that goes into a successful sale.
If you are a Buyer it is in your best interest to buy now before rates continue to increase and home ownership may be out of reach for you. The good news is, you are competing against way less buyers in the market now and do have the advantage of time being on your side. You don’t have to make a decision right away. But, I still wouldn’t wait too long either.
Be sure to watch for my update next month as we continue to monitor the Toronto and Etobicoke real estate market throughout the summer.