19 Jul Real Estate Market June 2022
Higher borrowing costs continued to impact home sales in June 2022. Sales totaled 6,474 – down by 41% compared to last year’s strong result. The number of transactions was also down compared to May 2022, but this is often the case due to the seasonal nature of the market. While the number of transactions was down year-over-year, the number of new listings was little changed over the same period. This has provided for more balance in the market, resulting in a more moderate annual pace of price growth.
The average selling price, at $1,146,254, remained 5.3% above the June 2021 level, but continued to trend lower on a monthly basis. Annual price growth was driven more so by less expensive market segments, including townhouses and condominium apartments.
Over in the Hamilton-Burlington area, sales were down by 19.2% from May 2022 and down by 37.8% compared to June 2021. There were 2,543 new listings in June 2022, which was down 3.3% from May 2022, and compared to June 2021, there was an increase in listings of 27.1%. The average sale price for residential properties across the RAHB market area was $946,026, which was down 5% from May 2022, and up 9% compared to June 2021. There were 2.6 months of inventory* in June 2022 compared to 1.7 months in May 2022.
“Home sales have been impacted by both the affordability challenge presented by mortgage rate hikes and the psychological effect wherein home buyers who can afford higher borrowing costs have put their decision on hold to see where home prices end up. Expect current market conditions to remain in place during the slower summer months. Once home prices stabilize, some buyers will re-enter the market despite higher borrowing costs,” said TRREB President Kevin Crigger.
“Listings will be an important indicator to watch over the next few months. With the unemployment rate low, the majority of households aren’t in a position where they need to sell their home. If would-be sellers decide to take a wait-and-see attitude over the next few months, it’s possible that active listings could trend lower as well. This could cause market conditions to tighten somewhat, providing some support for home prices,” said TRREB Chief Market Analyst Jason Mercer.
“Our region continues to grow because we attract people and businesses from all around the world. All of these people will require a place to live, whether they choose to buy or rent. Despite the shorter-term impact of higher borrowing costs, housing demand will remain strong over the long-term, as long as we can produce homes within which people can live. Policymakers at all levels need to make this their key goal,” said TRREB CEO John DiMichele.
For a closer look at the numbers and a city-by-city breakdown by property type, take a look below:
Questions about buying or selling? Reach out anytime, I’d be happy to discuss the market with you!
Burlington
Overall Residential Average Sale Price: $1,253,792 compared to $1,241,958 last month
Overall Average Days on Market: 15 days
Detached: $1,639,545 (vs May 2022 $1,584,5743)
Semi: $957,350 (vs May 2022 $987,675)
Town/Row: $954,250 (vs May 2022 $1,009,392)
Condo Townhouse: $771,261 (vs May 2022 $849,495)
Apartment: $644,021 (vs May 2022 $797,126)
Hamilton
Overall Residential Average Sale Price: $863,016 compared to $901,535 in May 2022
Overall Average Days on Market: 17.7 days
Detached: $949,730 (vs May 2022 $989,661)
Semi/Town/Row: $752,874 (vs May 2022 $794,676)
Apartment: $529,014 (vs May 2022 $591,351)
Oakville
Overall Residential Average Sale Price: $1,436,709 compared to last month $1,495,926
Overall Average Days on Market: 17 days
Detached: $1,927,887 (vs May 2022 $1,929,573)
Semi: $1,132,559 (vs May 2022 $1,297,250)
Freehold Townhouse: $1,202,547 (vs May 2022 $1,260,141)
Condo Townhouse: $867,240 (vs May 2022 $836,470)
Condo Apartment: $847,250 (vs May 2022 $831,938)
Milton
Overall Residential Average Sale Price: $1,101,868 compared to last month $1,195,053
Overall Average Days on Market: 13 days
Detached: $1,352,357 (vs May 2022 $1,456,704)
Semi: $1,032,915 (vs May 2022 $1,200,500)
Freehold Townhouse: $943,575 (vs May 2022 $966,756)
Condo Townhouse: $731,778 (vs May 2022 $814,375)
Condo Apartment: $665,647 (vs May 2022 $678,429)
Mississauga
Overall Residential Average Sale Price: $1,093,743 compared to last month $1,148,784
Overall Average Days on Market: 16 days
Detached: $1,605,497 (vs May 2022 $1,678,533)
Semi: $1,058,101 (vs May 2022 $1,123,011)
Freehold Townhouse: $1,092,741 (vs May 2022 $1,056,708)
Condo Townhouse: $819,176 (vs May 2022 $869,427)
Condo Apartment: $659,539 (vs May 2022 $672,162)
Toronto West
Overall Residential Average Sale Price: $1,121,743 compared to last month $1,164,622
Overall Average Days on Market: 16 days
Detached: $1,577,412 (vs May 2022 $1,650,810)
Semi: $1,157,806 (vs May 2022 $1,289,354)
Freehold Townhouse: $1,136,261 (vs May 2022 $1,220,477)
Condo Townhouse: $827,385 (vs May 2022 $864,517)
Condo Apartment: $719,870 (vs May 2022 $737,934)
Sources for Real Estate Market Update for June 2022 : Toronto Regional Real Estate Board and REALTORS® Association of Hamilton-Burlington