Our Market Is In Transition With Likely 3 Phases

By: Thomas Cook

Our Market Is In Transition With Likely 3 Phases

Hi, I’m Thomas Cook from Toronto's Real Estate Team at RE/MAX and here is our May 2022 Toronto real estate market report.
 
As the Bank Of Canada raises their prime rate, inflation remains strong and the war in Ukraine continues.  How will this impact our local real estate market?
 
Let’s review some of the Toronto Real Estate Board statistics and see what’s happened.
 
The last time May sales numbers came in this low (7,283 sales of houses and condos across the GTA), in the midst of the typical busy spring market was back in 2020 in the midst of the Covid pandemic.  This was 39% below May sales in 2021.
 
Condo townhouse and high-rise suite sales mirrored that of the overall market and were lower by 40%.  Overall, 2,370 units were sold in the month.
 
The May 2022 average sale price for all GTA homes came in at $1,212,806… a modest 9.4% increase compared to one year ago.  If you compare this May to May 2020, two years ago, the average sale price is still up a very respectable 40.4%.
 
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 May increased dramatically from the month before… an approximate 18% increase to 15,433.
 
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 May ratio again dropped substantially to 47.2% indicating a modest seller’s market.
 
The days-on-market average for GTA / Toronto homes was 1 day slower at 12 days.
 
Here’s a snapshot summary of the significant real estate milestones for Toronto in MAY 2022 as we begin the year.

Thomas Cook
Thomas@LivingInToronto.com
647-962-1650

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