Market Snapshot - May 2022
The great rebalancing is here.
Thanks to multiple rate increases (with yet another bump on the books June 1), the market has been taking a noticeable hit. GTA sales went down 9% from April to May, and year-over-year, they’ve seen a dramatic drop of almost 40%. The average selling price for a home last month was 10% lower than the 2022 peak, sitting at $1,212,806 – over $120K less than at the height of the market in February.
The times, they are a-changin’.
So while we aren’t anywhere near a buyer's market, we are definitely in a more balanced situation where buyers are getting back some negotiating power. Agents have reported sales offer days with no offers, sales without offer dates, prices under asking, and even the return of conditional offers.
The 905 – which saw some of the greatest appreciation during COVID – is now seeing the biggest drops, with a 5% decrease in average price from April to May, and a 7.5% drop in sales. Inventory levels are looking healthier these days across the board: the number of listings in May was nearly triple what was available to buyers in January.
While the resale market cools, the rental market just keeps heating up, with prices heading skyward. In May, a one-bed in the GTA was going for an average yearly high of $1,945 – and the average price tag for a one-bedroom downtown was $2,103.
One thing to keep in mind, though: having a good understanding of the stats in a specific neighbourhood is a lot more important than looking at overall Toronto numbers. The market varies tremendously from area to area – and even street to street within certain neighborhoods
