TORONTO, ONTARIO, July 6, 2022 - Higher borrowing costs continued to impact home sales in June
2022. Sales totalled 6,474 - down by 41 per cent 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 per cent above the June 2021 level but continued
to trend lower on a monthly basis. The MLS® Home Price Index Composite Benchmark was up by 17.9 per
cent year-over-year but also experienced a month-over-month dip compared to May. 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.
While the number of transactions was down year-over-year, the number of new listings was little changed
over the same period. This has provided for more balance in the market, resulting in a more moderate
annual pace of price growth.
Listings will be an important indicator to watch over the next few months. With the unemployment rate low,
the majority of households aren9t in a position where they need to sell their home. If would-be sellers decide
to take a wait-and-see attitude over the next few months, it is possible that active listings could trend lower
as well. This could cause market conditions to tighten somewhat, providing some support for home prices,"
said TRREB Chief Market Analyst Jason Mercer.
Our region continues to grow because we attract people and businesses from all around the world. All of
these people will require a place to live, whether they choose to buy or rent. Despite the shorter-term
impact of higher borrowing costs, housing demand will remain strong over the long-term, as long as we can
produce homes within which people can live. Policymakers at all levels need to make this their key goal,"
said TRREB CEO John DiMichele