Summer may be hot, but the Toronto real estate market is not.
In most regions and neighborhoods, average selling prices fell month-over-month, with some dropping more than 31% due to weak sales activity.
In July, the GTA housing market continued to ease as house prices fell for a fifth consecutive month. But areas like Oakville have seen prices rise thanks to sales of more expensive properties, while most areas have seen prices fall.
Leaside, a family-friendly neighborhood straddling Bayview Avenue, saw a decline of more than 31% from extremely low sales activity, while Oakville saw a price increase of more than 6%, according to the latest figures from the Toronto Regional Real Estate Board (TRREB).
A big reason for home price variability in the GTA is weak sales activity – in July there was a 47% drop in sales in the area. With fewer sales, average sale prices have fallen, according to property experts. And another Bank of Canada rate hike scheduled for September continues to keep potential buyers waiting for the market to stabilize, especially after the 1% hike on July 13, they also note.
“In September, we may see a slight pick-up in demand, but we don’t know what the volume of listings will be and that drives activity in the market,” said John Pasalis, president of real estate brokerage Realosophy. “But I suspect it will still be slow even if buyer demand returns. We won’t be going back to the crazy bidding wars of early 2022.”
Prices could plateau or continue to come under downward pressure, he added.
While the average selling price of all homes and condos in the GTA was actually up 1.2% from July 2021, to $1,074,754, that average is down over $255,000. from February’s market high of $1.33 million, making it the fifth consecutive month. decline.
Pasalis said buyers and sellers need to do their homework.
“Buyers should look at comparables from the past week or two, not two months ago, because prices have changed dramatically,” he said. “The prices also change depending on the neighborhood, because it’s different from region to region.”
Prices and sales volumes varied across the GTA:
Leaside — Thorncliffe Park — Flemingdon Park
The Leaside area saw the biggest drop in the average sale price of more than 31% to $1.07 million in July from $1.56 million in June.
The decline can largely be attributed to a significant drop from 40 sales in June to 13 sales in July, said Karen Yolevski, chief operating officer of Royal LePage, business brokerage.
“You see buyers weighing the impact of interest rates and taking a wait-and-see approach,” she said. “That’s why we’re seeing this drop in July.”
Another reason is that July and August are typically slow selling months in the real estate market as people go on vacation, Yolevski said. In Leaside, which is family oriented, many people are away or focused on family summer vacations.
“People don’t transact as much in the summer, so we expect that to pick up again in September.”
North York—Clanton Park—Bathurst Manor
In North Toronto, the average month-over-month selling price fell more than 27%. The average price rose from $1.22 million in June to $888,000 in July. There were also six fewer sales in the region over the same period.
“The number of sales has gone down,” said Cailey Heaps, CEO and Official Broker of The Heaps Estrin Team. “And the houses that sold, sold for less.”
In June, 16 single-detached homes sold, but in July there were only five – and those five were the only properties that sold above the million-dollar mark.
The Annex—Yonge—St. Clair
The Annex area saw a significant month-over-month average selling price decline of more than 23%, bringing the average selling price to $1.63 million in July from $2.12 million in June.
There were eight fewer sales, with none above the $5 million mark, Heaps said. While in June, the area saw a jump of more than 20% due to the sale of expensive homes.
Condos and semi-detached homes accounted for the majority of sales in the area, Yolevski said. These properties are generally less expensive than single-family homes, which lowers the overall price.
However, in June, the median price was $1.6 million, which is similar to July’s average price, Yolevski said. This means that the most expensive properties distorted the higher June figures, which partly explains the significant drop in July.
Oakville was one of the few areas in the GTA to see the average sale price rise more than 6% from June, bringing the price to $1.52 million in July from $1.43 million. dollars the previous month.
“In Oakville, there is not enough supply for buyers who are putting upward pressure on prices,” said Alex Irish, team leader and sales representative at Alex Irish & Associates. “The high end of the market is also less impacted by interest rate hikes.”
There are more choices in the high-end market generating more sales, she said. In Oakville’s prime southeast location, it’s hard to buy homes for less than $5 million, she added.
“When sales activity is down, that’s when you see wealthier buyers coming out,” Irish said. “They like a quieter market because they don’t like competition and can be more discreet with their purchases.”
Overall, in the GTA, prices appreciate every year, and in 10 years properties have appreciated by 130%, Yolevski said.
“People who are in the market, and have been for a while, are taking advantage of it,” she said.
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