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Click here to see other videos from our team. The Toronto Regional Real Estate Board said that about 6,474 homes changed hands last month, down from 11,053 during the previous June. June sales were down compared to May. While the figure and year-over-year sales suggest the current, cooler market conditions will persist, the board said some of the decrease between May and June was due to seasonal trends.
Home sales have been impacted by both the affordability challenge presented by mortgage rate hikes and the psychological effect wherein homebuyers who can afford higher borrowing costs have put their decision on hold to see where home prices end up, Kevin Crigger, the board's president, said in a release. Expect current market conditions to remain in place during the slower summer months. Crigger's prediction comes after several of the country's biggest housing markets - Vancouver, Toronto and Calgary - have slowed in recent months. The phenomenon has been linked to rising interest and mortgage rates as well as rising inflation, which have recently hit 7.7 per cent, the highest level in almost 40 years, according to Realtors and economists. The Bank of Canada has teased that further hikes could be on their way. The market is still in favor of the market because homes are sitting for sale longer and often not getting the frantic bidding wars they would have months ago because of those conditions. In June, homes sold for less than average compared to those that changed hands in May, but prices were still up from last year.
The average home price in the region was $1,146, 254 last month, a five per cent increase from June 2021, a roughly five per cent increase from June 2021. June's average was almost six per cent less than in May 2022. The year-over-year increases in prices were seen across all categories of housing and extended to areas surrounding Toronto. Average prices in the 416 -- nickname for the city of Toronto that excludes its suburbs -- reached $1,737, 012 for detached homes, $1,027, 050 for townhouses and $771,267 for condos. More on this topic In the suburban areas of the GTA, the average price was more than $1,361, 862 for a detached home, $906,311 for a townhouse and $692,598 for a condo. As prices went up from June 2021, real estate agents have noticed that many have held off listing their properties, preferring to wait for the market to turn again. The number of properties listed in June was almost the same as compared to last year, the board found. The new listings increased by one per cent to 16,347 last month from June 2021 to 16,347. They also dropped 12 per cent from May 2022.