Average price dropped by 5.5% from the $1,214,806 posted in June to $1,146,254 in July, and there’s no way to pretend this is insignificant! This is the fourth-straight month we’ve seen a drop in the average home price, from a high of $1,334,554 in February. Year-over-year, the average home price is still up 5.3% over the $1,088,991 average sale in June of 2021, but so many people got accustomed to seeing year-over-year figures in the 20%+ range early in 2022 that a 5.3% increase is going to seem paltry by comparison. For reference, this $1,146,254 number places us “back” in October of 2021.
Sales declined on a month-over-month basis yet again, this being the third month in a row now, from 7,283 in May to 6,474 in June; a decline of 11.1%. Recall that the 7,283 sales in May is the lowest in any month of May in the history of TRREB. The 6,474 sales in June represent the fewest in any month of June since 2002. On a year-over-year basis, those 6,474 sales are 41.4% lower than the 11,053 recorded in May of 2021, and while May of 2021 was the third-highest total in any month of May, we’re about a full 1,500 sales removed from anything resembling an “average” month.
New listings are down 12.4% from the 18,679 in May, checking in at 16,347 this past month, which is actually a good think for market health, given that 41.4% decline in sales! We saw 16,193 sales in June of 2021, meaning that the 16,347 recorded this year is a mere 1.0% ahead of 2021. But if listings are within 1.0%, and sales are down 41.4%, then aren’t the “active listings” figures going to look absurd?
Active listings increased from 15,433 in May to 16,093 in June, representing a 4.3% increase, it’s the year-over-year data that seems “absurd.” We saw 11,293 active listings at the end of June, 2021, and when we compare that with the whopping 16,093 active listings on the market at the end of last month, that represents a 42.5% increase. Like I said above: when you have new listings within a 1% margin of last year, but sales are down 41.4%, you’re going to have a lot of listings left at month’s end. If inventory continues to build like this, we’re going to see a full transition to “buyer’s market” by August.
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