July 2022 Toronto Real Estate Board Market Watch
Tuesday Aug 23rd, 2022
The Greater Toronto Area real estate market plummeted after a 1% interest rate increase. In July 2022 recorded a 6% decrease month-over-month, which is the largest decrease this year. However, some cities are gradually getting on their footing. Which are these cities?
This month’s July 2022 Toronto Real Estate Board Market Watch Report will give you a better sense of the real estate market in the GTA.
Average Sold Price
Across the whole GTA for all the property types, the average sold price has come down to the lowest ever since 2022 February's peak of $1.07 Million.
Not only is this the lowest of all the past couple months, July 2022 has also recorded the largest drop. Compared to June 2022's average sold price of $1.146 million, July 2022 has seen over 6% drop.
Number of Sold Properties
The transaction volume, compared to July 2021, has been halved.
Last year in July over 9,000 properties sold, but in July 2022, only 4,900 properties were sold. This is largely because many sellers are still hoping to sell their properties at the peak February or March 2022's price. But when no perspective buyers offer to that amount, sellers are not willing to sell. Some sellers simply don’t even list their properties on the market.
On the other hand, perspective buyers are hoping to get a bargain. The buyer and seller sides have not achieved a market condition, hence there are considerably less properties being sold compared to July 2021.
New Listings and Active Listings
In terms of listing for the supplies side, we are not observing many panic sellers.
New properties coming to the market in July 2022 actually remain the same number as last year, which is a continued trend from the past 2 months.
Based on the number of new listings from May 2022 to now, we don't see any signs that sellers are panicking and trying to get rid of their properties as quickly as possible in order to prevent further loss.
However, because the transaction volume has dropped dramatically, while the number of new listings remains consistent, that created many more active listings on the market.
As we can see, active listing had almost 60% increase from last year.
The inventory over the past three months has grown to the largest for the past few years since COVID-19. With the current sales speed, it will take over 3 months for the market to absorb all the available properties.
This means that buyers now have many choices, and they can really take their time to pick the property they desire.
Average Days on Market (DOM)
With the level of inventory, we also need to look at the average days on market (DOM).
We can see the DOM is now up to almost 20 days, after hovering around 10 days for a very long time.
Comparing Real Estate Data for the City of Toronto and the Suburb
As we can see, the average freehold detached property has dropped quite significantly in the city of Toronto, from last month's $1.74 Million to this month's $1.51 Million, which is close to a $200,000 drop in price.
However, this is not the same case for the suburbs. Prices have remained flat from $1.36 M to $1.32 M. So even though GTA as a whole has dropped 6%, in actuality not all areas perform the same.
Starting from July we have been gathering some information from our own cases that the number of offers has increased. Over the past 4 weeks we have been routinely seeing multiple 15-19 offers for different properties.
So, if the property is really attractive, there are actually quite a lot of buyers lining up for them.
Why is this such a discrepancy? Let's take a look at the actual numbers.
City of Toronto
When we look into the data from January to July 2022, within the City of Toronto, the average sold price peaked in February at $1.334M. Since then, the price has continued to go down. Comparing the peak to July’s $1.074M, it represents a 20% decrease.
Delving deeper into the data, we can see that the month-to-month decrease has been accelerating since March, from 2.6% drop, to 3.5%, 5.5%, and to July’s 6.2%. It’s needless to say that the property prices in the City of Toronto has been taking a hit.
Let's take a look at the average sold price for Richmond Hill.
Interestingly, in July 2022, Richmond Hill actually bounced back strongly after the drop in June. When we compare year-to-year pricing, Richmond Hill has gained compared to July 2021.
The drop was 5% 7.8% 7% decrease in prior months, and in July, the decrease narrowed to just 3%.
Similar to Richmond Hill, Newmarket is also another city in the York region.
After the sharp decline at the beginning of 2022, over the past two or three months we observed that the decrease became much flatter.
Both Richmond Hill and New Market are cities that are very popular amongst new immigrants, particularly those from China.
After 8%, and 6% decrease in prior months, in July the decrease was only 1.6%
Brampton is another city that is very popular among newcomers particularly from India. So the pricing trend is similar to Richmond Hill and New Market, that the decrease line became flatter in the recent few months.
When the weather is warmer, most newcomers choose to arrive in Canada. The accommodation demands generated by newcomers counter the pressure of the price decrease.
In summary, even though many cities are still dropping in prices, but when we look at the trends at suburbs around the GTA, and particular in cities that are popular amongst new immigrants, the downward pricing impact has shown signs of slowing down.
Buying and Selling Toronto Real Estate
Whether you are buying your first condo, or selling a single-family home, Team Priscilla Han Realty can help you.
We are proud to serve the whole Greater Toronto Area (GTA), including but not limited to the CIty of Toronto, North York, Markham, Richmond Hill, Vaughan, Aurora, Scarborough, Mississauga, Oakville , Pickering, and Oshawa.
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