May GTA Market Stats – Opportunity knocks as GTA sees continued market adjustments
In May the GTA real estate market saw more adjustments, mainly as a reaction to rising interest rates as a measure to combat inflation.
Historically speaking, the GTA real estate market has seen strong growth, especially over the past 10 years. This data shows the resilience of the GTA real estate market.
Review of May Market Activity
In May, there were a total of 7,283 sales in the GTA. That’s a 38.8% decrease compared to the 11,903 homes sold in May 2021 and a 9.1% decrease compared to April 2022.
The average selling price of $1,212,806 was a slight dip from the previous month. The average price is still 9.4% above last year’s average of $1,108,124.
The average number of listing days on the market was 12. Total active listings were up 26% year-over-year. New listings were slightly up by 0.5% year-over-year, from 18,593 in May 2021 to 18,679 in May 2022.
Average price by home type:
- The benchmark price for detached homes increased by 9.5% year-over-year to $1,549,498M but decreased by 4.8% month-over-month.
- The benchmark price for semi-detached homes increased by 13.2% to $1,204,893M but decreased by 4.3% month-over-month.
- The benchmark price for townhouse homes increased by 12.7% to $977,194k but decreased by 4.1% month-over-month.
- The benchmark price for condos increased by 12.9% year-over-year to $770,894k but decreased by 2.4% month-over-month.
Opportunities for Buyers and Sellers
It’s no secret that the GTA Real Estate Market has seen explosive growth in the past two years, due in part to exceptional circumstances such as the pandemic and low-interest rates. The recent market adjustments do not equate to a cause for alarm. In fact, for many, these shifts open windows of opportunity.
For buyers, there’s an opportunity to take advantage of more negotiating power for some properties. Those who are locked into pre-approved interest rates will be eager to close before those rates expire.
For sellers, strategy is key. A knowledgeable agent is essential and can support sellers through market adjustments. What we’re seeing in today’s real estate scene isn’t new. For example, the current market patterns are similar to what we saw in 2017. We saw the market slow down for a bit, but remained resilient and continued to increase over time. The best approach for sellers when the market is fluctuating is to focus on pricing strategy. From activity in the surrounding area and individual building trends (for condos), through to showing appointment counts and each listing’s unique characteristics, many variables inform a property’s asking price.
Whether working with a buyer or seller, the agent’s role as a trusted advisor is crucial. Agents can help their clients navigate through the current market fluctuations by offering strong market insights and strategic plans. Working with a reputable brokerage means that agents can take advantage of a wealth of knowledge and resources.
For more information, watch our special leadership panel discussion “Home Prices In a Shifting Market – What you Need to Know”
All stats are provided by Toronto Regional Real Estate Board.