Toronto home sales down 34% from last year, up 15% from July: Real Estate Board

TORONTO — The Toronto Regional Real Estate Board says August sales were down 34% from a year ago but up nearly 15% from July as buyers returned to the market to take advantage prices that have fallen from winter highs.

The board said on Friday sales for the month were 5,627 compared to 8,549 last August and 4,900 in July 2022.

The 34% year-over-year decline was a lower rate of decline than the previous four months, but comes at a time when the area’s real estate market has cooled significantly from the difficult conditions seen in the beginning of the year.

Rising interest and mortgage rates in recent months have dampened sales and started to weigh on prices, ending bidding wars and encouraging potential buyers to sit on the sidelines and wait for more. sharp price drops.

Those who have ventured into the market in recent weeks have found prices to be lower than during the frenetic winter months, but still higher than they were a year and even a month ago.

Year over year, the home price index rose 8.9% and the average sale price for all home types combined rose 0.9% to $1,079,500. However, the index was lower than in July.

The seasonally adjusted average selling price was $1,130,463, up about 2% month-over-month, but down about 12% from $1,285,129 when the region experienced its highest average price over the past 12 months.

The monthly growth in the average price alongside a decline in the index suggests a greater share of more expensive home types sold in August, TRREB said.

Last month, new listings totaled 10,537, down less than 1% from last August’s 10,615.

The council has also used its monthly property report to push for policy changes.

The council wants the Office of the Superintendent of Financial Institutions to consider scrapping the stress test for existing mortgage holders who want to seek the best possible rate on renewal rather than forcing them to stay with their current lender to avoid the stress test. resistance.

The stress test sets the qualifying rate on uninsured mortgages at two percentage points above the contract rate or at 5.25%, whichever is greater.

“The federal government has an opportunity to provide greater housing affordability to existing homeowners by removing the stress test when existing mortgages are transferred to a new lender, allowing for greater competition in the mortgage market,” said Kevin Crigger, president of the TRREB, in A Liberation.

« Additionally, allowing longer amortization periods on mortgage renewals would help current homeowners in an inflationary environment where day-to-day costs have risen dramatically. »

This report from The Canadian Press was first published on September 2, 2022.

Tara Deschamps, The Canadian Press

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