The slowdown in Toronto’s housing market continued last month, with new data showing that the number of homes sold in Canada’s largest city was nearly halved from a year ago.
The Toronto Region Real Estate Board (TRREB) reported that 6,474 homes were sold in the Greater Toronto Area last month, down 41% from last June.
Like many parts of Canada, home prices in and around Toronto have skyrocketed during the pandemic as record low interest rates have allowed buyers to increase their budget to buy more expensive homes. But that trend reversed dramatically in March of this year when the Bank of Canada began raising interest rates.
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The impact on the market was almost immediate as sales and new listings slowed and price wars that were once commonplace began to fade as buyers could afford to be more picky.
“Home sales have been impacted both by the affordability issue associated with rising mortgage rates and by the psychological impact that home buyers, who can afford higher borrowing costs, have delayed their decision to see how home prices ultimately turn out.” , said Kevin Crigger, president of TRREB. “Expect current market conditions to remain the same during the slower summer months.”
On the price side, there is also a slowdown, although it is not as pronounced as in terms of volumes.
The median price of a home sold during the month was $1,146,254. This is five percent up from the same month a year ago, but has been steadily declining for four consecutive months.
The average selling price is down 14% from a peak of $1.3 million in February.