Since the high earlier this spring, Toronto's average property prices, and sales activity have been progressively falling. From June 2021 to June 2022, average Toronto home prices declined 2.5 percent month over month but are still up 12.6 percent yearly. In July 2021, Toronto's housing market was tighter than a year earlier, with the sales-to-new-listings ratio rising from 61 percent to 75 percent, firmly placing the city in a seller's market.
The Average Prices in Toronto
The average sales price in Toronto in July 2021 was $1,062,256. When broken down by category, detached homes led the way in terms of year-over-year price rise, rising 21.7 percent to $1,405,478 at the end of the year. On the other hand, detached homes saw the most significant reduction in sales activity, with 26.4 percent fewer sales year over year. The average price of a semi-detached house grew 12.2 percent year over year to $1,027,895, while townhouses increased 29 percent to $950,038. Condo apartments experienced the slowest price growth but were the only dwelling category to increase sales year over year. Condo apartment prices climbed by 6% yearly to $674,490, while condo apartment sales increased by 8.2 percent.
Mortgage Rates in Toronto
The rates have climbed from their lows in 2020 but have remained constant in recent months. By the second half of 2022, the low-interest-rate environment will have changed when the first of many rate hikes are forecast. The Bank of Canada maintained its near-zero target overnight rate at their most recent meeting on July 14th but reduced its bond-buying program from $3 billion to $2 billion per week. Higher bond yields might push up mortgage rates, making Toronto less affordable.