Toronto real estate is undoubtedly stumbling. The market has shifted. Far fewer sales, fewer showings, fewer offers. Undoubtedly, the suburban markets are getting hit hard on value. Toronto’s core is less impacted by price. However, the story regarding price impact within the city is focused on the great homes. The great homes garner a lot of interest. A big reason is that higher-end buyers are less rate sensitive.
We do expect that the market will continue to soften. It’s just a question of for how long?
Some people like to compare markets with gravity. What goes up must come down. Well, that sounds catchy and nice and opportunistic for some buyers. But the truth is that when markets go up, they can go down for some time. Historically speaking, markets have risen over the long term. It’s simply a question of how long this will last.
The 2008/09 Financial Crisis hit the Toronto real estate market briefly.
The 2017 Dip was short-lived.
The 2020 Pandemic ground our market to a halt. Then it rebounded within months to reach a record high.
That which went up did come down. But went up again.
The real estate market in June has returned to nearly the same values as a year ago. Note that the drop has been more evident since February of this year.
Should I time the market?
No. The truth is you cannot time the real estate market. Some people have been bearish on Toronto’s market for 25 years. Those people sat on the sidelines and missed out on substantial financial growth. You only know when the market has hit bottom after it’s come and gone. We typically have proof 4-6 months after the fact.
How long with the market be slow?
It’s impossible to know for sure. However, we expect that Toronto’s real estate market slowdown will last between 12-18 months. The city is less rate-sensitive than the media would have you believe. The demand for housing and high immigration will allow the city of Toronto’s market to rebound sooner than many expect.
Toronto Real Estate Market Report – June 2022
June 2022 was another month of few sales in Toronto’s central areas. There were a total of 1,449 sales transactions. Keep in mind that with so few trades, the values can be skewed with more lower-priced condos and houses versus higher-priced homes – our overall annual markers will provide a better sense of value increase, which you can reach out to us here to discuss.
Detached Home Values
There were 249 sales in central Toronto in June 2022. The average home sold for $2,341,937, up 1% since June 2021. The average home was on the market for a meagre 11 days.
Semi-Detached & Townhouse Values
There were 204 sales in central Toronto in June 2022. The average home sold for $1,497,797, up 3% since June 2021. The average home was on the market for half of the Toronto market average, 11 days.
➤ Check out our top reads for anyone thinking about living in Toronto:
Toronto Condo Values
There were 747 condo sales—the average central Toronto condo sold for $845,850, up 4% from June 2021. The average condo was on the market for a low 14 days.
If you want to learn more about Toronto real estate, contact us here and read through our blogs.
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