Dramatic Market Shift – Are We At The Bottom Now?

By: Thomas Cook

Dramatic Market Shift – Are We At The Bottom Now?

Hi, I’m Thomas Cook from Toronto's Real Estate Team at RE/MAX and here is our June 2022 Toronto real estate market report.
 
We’ve seen a dramatic shift in our Toronto market over the last few months as sales have dropped and listing inventory has risen.  Have we hit bottom yet?
 
Let’s review some of the Toronto Real Estate Board statistics and see what’s happened.
 
The last time June sales numbers came in this low (6,474 sales of houses and condos across the GTA), at the end of a typical busy spring market was all the way back in 2000, 22 years ago.  This was 41% below June sales in 2021.
 
Condo townhouse and high-rise suite sales mirrored that of the overall market and were lower by 39%.  Overall, 2,258 units were sold in the month.
 
The June 2022 average sale price for all GTA homes came in at $1,146,254… a modest 5.2% increase compared to one year ago.  If you compare this June to June 2020, two years ago, the average sale price is still up a very respectable 23.1%.
 
The active listing inventory is one of the strongest indicators of how slow or fast the market has been moving.  The ‘active listing’ inventory for the month of June increased marginally from the month before… an approximate 4.3% increase to 16,093.
 
The sales-to-listings OR percent-chance-of-selling ratio is how we determine what type of market we’re actually in.  24-28% is a neutral market, below 24% is a buyer’s market and above 28% is a seller’s market.
 
With the market continuing to shift, the June ratio again dropped once again to 40.2% indicating a very modest seller’s market.
 
The days-on-market average for GTA / Toronto homes was 3 days slower at 15 days. 
 
Here’s a snapshot summary of the significant real estate milestones for Toronto in JUNE 2022 as we swing into early summer.

As forecast last month, we can expect a ‘rough ride’ over the next few months as governments attempt to get a handle on inflation and as the war in Ukraine continues to affect the price of oil worldwide

Thomas Cook
647-962-1650


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