The Toronto Region Real Estate Board (TRREB) said 6,474 homes sold in the Greater Toronto Area last month, down 41 per cent compared to last June. As has happened in many parts of Canada, home prices in and around Toronto have soared during the pandemic as low interest rates have allowed buyers to stretch their budgets to buy more expensive homes. But that trend abruptly reversed in March of this year, when the Bank of Canada began raising interest rates. The impact on the market was almost immediate, as sales and new listings slowed and the once-common bidding wars began to disappear as buyers could afford to be pickier. “Home sales have been affected by both the affordability challenge presented by rising mortgage rates and the psychological effect where homebuyers who can afford higher borrowing costs have put their decision to see where the home prices,” said TRREB President Kevin Crigger. “Expect current market conditions to remain in place through the slower summer months.” There is also a slowdown on the price side, although not as pronounced as the one underway on the volume side. The average price of a home sold during the month was $1,146,254. This is up five percent compared to the same month a year ago, but has been steadily declining for four consecutive months. The average sales price is down 14 percent from a peak of more than $1.3 million reached in February. More to come.
