According to TRREB, GTA home sales fell 47% from the same time last year and 24% from this past June. Canada's key interest rate was increased by 1% in mid-July, making it the largest hike the country has seen in 24 years. Because of this, the cost of carrying a mortgage has increased, encouraging people to rethink their housing intentions. Prospective buyers are waiting for a further decline and sellers are debating between what they can get from their homes or waiting for the market to turn back in their favor. 

Looking at July 2022, the average selling price in the GTA was $1,074,754. There was a yearly increase of 1.2% and when compared to last month (June 2022), the average selling price has decreased by $71,500 from $1,146,254.

This decrease in price is evident across all home types. The highest decrease is observed in Detached and Semi-Detached properties, down 6.34% and 4.48% respectively. These were closely followed by Condo Apartments. This month, Condo Townhouses and Townhouses experienced the lowest price.

Observing the average selling price in the GTA from the past 5 years, we still continue to see this year following most closely the trend of 2017.

This trend is expected to continue to decrease into September when we are likely to see some adjustment in price.

Comparing total residential transactions from July of last year, we experienced a 47.7% decrease in transactions. 

Most notably, there was a record low number of transactions we've seen since July of 2002. 

Last month, we ended June with 16,094. Since then, the supply of homes has decreased 4.9% by 759 and when comparing the inventory from July of last year, there was a 57.6% increase. 

Months of Inventory (MOI) is the ratio that represents the number of months it would take to completely sell the homes that are currently listed for sale. This number is an important measure when determining the supply and demand in the housing market.

We can see the MOI increasing mainly due to the increase in inventory and the fact that the number of transactions is lower. Analyzing the numbers, it appears that we are moving towards a neutral or potentially a buyer's market.

If you are thinking about buying, selling, investing, or just have some real estate questions, you can reach me directly at 647-298-7500 or by scheduling a meeting with me.

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