GTA home prices dropped for fourth consecutive month in June
June sales of Toronto homes fell by just over 41 per cent compared with the same month last year as higher borrowing costs weighed on the market, the region's real estate board said Wednesday.
About 6,474 homes changed hands last month, down from 11,053 during the prior June, the Toronto Regional Real Estate Board said. June sales were also down compared to May.
- Download our app to get local alerts to your device
- Get the latest local updates right to your inbox
While the board attributed some of the decrease between May and June to seasonal trends, it said the figure and year-over-year sales suggest the current, cooler market conditions will persist.
“Home sales have been impacted by both the affordability challenge presented by mortgage rate hikes and the psychological effect wherein homebuyers who can afford higher borrowing costs have put their decision on hold to see where home prices end up,” Kevin Crigger, the board's president, said in a release.
“Expect current market conditions to remain in place during the slower summer months.”
Crigger's prediction comes as several of the country's biggest housing markets - Vancouver, Toronto and Calgary - have eased in recent months.
Realtors and economists attribute the phenomenon to rising interest and mortgage rates as well as inflation, which recently hit 7.7 per cent, the highest it's been in almost 40 years. The Bank of Canada has teased further hikes could be on their way.
Those conditions mean less purchasing power for prospective buyers, but the market is still shifting in their favour because homes are sitting for sale longer and often not garnering the frantic bidding wars they would have months ago.
READ MORE: What $1 million gets you in real estate markets across Ontario
Though homes sold for less on average in June than those that changed hands in May, prices were still up from last year.
The average home price in the region stretched to $1,146,254 last month, a roughly five per cent increase from June 2021. June's average was an almost six per cent drop from May 2022.
The year-over-year increases in prices were seen across every category of housing and stretched to areas surrounding Toronto.
Average prices in the 416 - a nickname for the City of Toronto that excludes its suburbs - reached $1,737,012 for detached homes, $1,027,050 for townhouses and $771,267 for condos.
In suburban regions of the GTA, known as the 905, the average price was more than $1,361,862 for a detached home, $906,311 for a townhouse and $692,598 for a condo.
As prices crept up from June 2021, real estate agents have noticed many have held off listing their properties, preferring to wait for the market to turn again.
The number of properties listed during June was almost unchanged from last year, the board found.
New listings rose by one per cent to 16,347 last month from June 2021. They also dropped 12 per cent from May 2022.
CTVNews.ca Top Stories
NEW Keeping these exotic pets is 'cruel' and 'dangerous,' Canadian animal advocates say
Canadian pet owners are finding companionship beyond dogs and cats. Tigers, alligators, scorpions and tarantulas are among some of the exotic pets they are keeping in private homes, which pose risks to public safety and animal welfare, advocates say.
NEW Life got in the way of one woman's reunion with her father, but a DNA test gained her a family
Anne Marie Cavner was the closest she'd ever been to meeting her biological father, but then life dealt her a blow. From an unexpected loss to a host of new relationships, a DNA test changed her life, and she doesn't regret a thing.
Doctors ask Liberal government to reconsider capital gains tax change
The Canadian Medical Association is asking the federal government to reconsider its proposed changes to capital gains taxation, arguing it will affect doctors' retirement savings.
How quietly promised law changes in the 2024 federal budget could impact your day-to-day life
The 2024 federal budget released last week includes numerous big spending promises that have garnered headlines. But, tucked into the 416-page document are also series of smaller items, such as promising to amend the law regarding infant formula and to force banks to label government rebates, that you may have missed.
Quebec farmers have been protesting since December. Is anyone listening?
Upset about high interest rates, growing paperwork and heavy regulatory burdens, protesting farmers have become a familiar sight across Quebec since December.
'Catch-and-kill' strategy to be a focus as testimony resumes in Trump hush money case
A veteran tabloid publisher was expected to return to the witness stand Tuesday in Donald Trump's historic hush money trial.
Quebec Health Department reports 28 cases of eye damage linked to solar eclipse
Quebec's Health Department says it has received 28 reports of eye damage related to the April 8 total solar eclipse that passed over southern parts of the province.
Psychologist becomes first person in Peru to die by euthanasia after fighting in court for years
A Peruvian psychologist who suffered from an incurable disease that weakened her muscles and had her confined to her bed for several years, died by euthanasia, her lawyer said Monday, becoming the first person in the country to obtain the right to die with medical assistance.
Diver pinned under water by an alligator figured he had choice. Lose his arm or lose his life
An alligator attacked a diver on April 15 as he surfaced from his dive, nearly out of air. His tank emptied with the gator's jaws crushing the arm he put up in defence.