The number of sold properties is decreasing. (Archives)
The housing market downturn in Toronto and Vancouver continues. Prices continue to decline from the all-time high observed in February 2022.
Statistics for June 2022 show that the number of homes sold in Toronto and Vancouver fell by more than x27;one-third vis-à-vis the vertices. Moreover, the average price has now been falling for several consecutive months.
The Toronto Regional Real Estate Board (TRREB) reported that 6,474 homes were sold in the Greater Toronto Area last month, down 41% from last June.
As has been the case in many parts of Canada, home prices in and around Toronto have skyrocketed during the COVID-19 pandemic as exceptionally low interest rates have allowed homebuyers to afford more money. stretch their budget to buy more expensive homes. But this trend abruptly changed direction in March of this year, when the Bank of Canada began raising interest rates.
The impact on the market was almost immediate, as sales and new listings slowed, and the bidding wars that were once commonplace began to die down as buyers could afford to be more selective.
Home sales have been hurt by both the affordability challenge presented by mortgage rate hikes and the psychological effect that buyers who can afford higher borrowing costs higher have put their decision on hold to see where home prices end up, said TRREB chairman Kevin Crigger. Expect current market conditions to remain in place through the slower summer months.
There is also a slowdown on the price side in Toronto, although not as pronounced as the ongoing one on the volume side.
The average price of x27; a house sold during the month of June was $1,146,254. This is an increase of 5% compared to the same month of the previous year. Average sale price has been down for four consecutive months.
Average sale price is down 14% from February's peak of over $1.3 million .
Lower prices are good news for buyers, but affordability remains a challenge.
Kriti Bhardwaj and her husband, Sachin Advani, are staying away from the market for a few years, looking for an opportunity to buy. But even though they see asking prices falling, they notice that the rate they would have to pay on any new mortgages is rising even faster, forcing them to stay out of the market.
I think this is a gradual process and it may take a few more months before we see a significant decline in the importance of #x27;increase [in prices] in 2021, Ms Bhardwaj said.
But it's quieting down, she added. There are more properties on the market and there are fewer buyers.
The story is similar on the West Coast as the number of sales in Vancouver is down 35% from last year's level, although the average price has been relatively flat so far.
The average price of a home sold in June in Greater Vancouver was $1,235,900, up 12% from a year ago , but down more than 2% for three months.
Realtor Steve Saretsky said there has been quite a change in management since February, especially in suburban communities outside of the city center – where prices rose the most when telecommuting was the norm.
Whatever comes is more than an hour away [by car from] the city is seeing the biggest drop, but that's also where prices had gone up the most,” he said in an interview with CBC News.
According to Mr. Saretsk y, rising interest rates led to a correction in the housing market.
With information from CBC's Pete Evans