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.
- May sales (7,283) were 39% below last year and 2nd lowest since May 22 years ago
- Active Listings (15,433) were 26% higher than last year and 18% above April
- The ratio of sales-to-listings saw a steep decline to 47.2% in May– still in a modest seller market territory but down dramatically from 130% in February 2022
- The May average sale price came in at $1,212,806 – and rose to 9.4% above one year ago and 40% above the May average in 2020
- The GTA real estate market overall averaged a quick 12 days-on-market
- Our market is traumatized right now but I’ve seen times like this before… first there’s ‘shock’, then ‘digestion’ and finally ‘acceptance’ and the market starts to recover. This transition typically takes 3-6 months from start to finish
- Detached home sales in May 2022 with a purchase price over $2,000,000 were down 23% (554 houses) while condo apartment sales over $2M were up by 19% (19 suites) compared to May 2021
- The CONDO townhouse / highrise share of the market came in at 32.5% during the month and condo sales (2,370) declined at the same rate as the overall market
- Downtown condo active listing numbers were up by +17% in C01 and by +19% in C08 from last year
- May year-over-year downtown condo sales were lower in both C01 (-41%) and in C08 (-39%) compared to 2021 with 3-month rolling average sale prices showing +7.4% to +27% increases year-over-year
- The downtown condo days-on-market average increased slightly to 14 days (C01) & 15 days (C08)
- The ratio of sales-to-listings for condos downtown dropped in C01 to 33.4% and 29.8% in C08 – a dramatic drop from the month previous – this is close to buyer market territory
- May 2022 continued the trend we’ve seen build since late March/early April. Those higher interest rates, higher inflation numbers and the war in Ukraine have all combined to finally slow everything down (which is NOT a bad thing)
- May saw detached homes in the 905 appreciate year-over-year by an average of 7.8% and 905 condominium average sale prices rise by an average of 19.7%. Sales here also declined substantially from one year ago
- As forecast last month, we’re in for a bit of 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
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