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July GTA Home Sales Down 47%, Average Selling Price Reaches $1 Million, Up 1.2% From July 2021

There were 4,912 home sales reported through the Toronto Regional Real Estate Board (TRREB) MLS® System in July 2022 – down by 47 per cent compared to July 2021. Following the regular seasonal trend, sales were also down compared to June.

New listings also declined on a year-over-year basis in July, albeit down by a more moderate four per
cent. The expectation is that the trend for new listings will continue to follow the trend for sales, as we move through the second half of 2022 and into 2023.

Market conditions remained much more balanced in July 2022 compared to a year earlier. As buyers continued to benefit from more choice, the annual rate of price growth has moderated. The MLS®
Home Price Index (HPI) Composite Benchmark was up by 12.9 per cent year-over-year. The average
selling price was up by 1.2 per cent compared to July 2021 to $1,074,754. Less expensive home types,
including condo apartments, experienced stronger rates of price growth as more buyers turned to these
segments to help mitigate the impact of higher borrowing costs.
“The Greater Toronto Area (GTA) population continues to grow and tight labour market conditions will
drive this growth moving forward. Despite more balanced market conditions resulting from rapidly
increasing mortgage rates, policymakers must continue to take action to boost housing supply to
account for long-term population growth. TRREB has put realistic solutions on the table to address the
existing housing affordability challenges. With savings high and the unemployment rate still low, home
buyers will eventually account for higher borrowing costs. When they do, we want to have an adequate
pipeline of supply in place or market conditions will tighten up again,” said TRREB Chief Market Analyst
Jason Mercer.
TRREB is also calling on all levels of government to reassess and clarify policies related to mortgage
lending and housing development.
“Many GTA households intend on purchasing a home in the future, but there is currently uncertainty
about where the market is headed. Policymakers could help allay some of this uncertainty. As higher
borrowing costs impact housing markets, TRREB maintains that the OSFI mortgage stress test should
be reviewed in the current environment. Consumers looking to renew their existing mortgages with a
different lender should not be subject to an additional stress test burden beyond what they would face
with their existing lender. Given the importance of the housing industry as a driver of economic growth,
a transparent process and sound rationale in the development and management of stress test
guidelines are also of utmost importance,” said TRREB CEO John DiMichele.
“With significant increases to lending rates in a short period, there has been a shift in consumer
sentiment, not market fundamentals. The federal government has a responsibility to not only maintain
confidence in the financial system, but to instill confidence in homeowners that they will be able to stay
in their homes despite rising mortgage costs. Longer mortgage amortization periods of up to 40 years
on renewals and switches should be explored. With the benefit of hindsight, it appears that the Bank of
2
Canada’s rate increases started too late. Now we are dealing with outsized increases to curb
generationally high inflation. The federal government must enact measures which will assist buyers
facing affordability challenges in an inflationary environment where costs are rising at the gas pumps,
the grocery stores and everywhere in between,” said TRREB President Kevin Crigger.
“The provincial government, elected on a platform of bolstering housing supply and increasing housing
affordability, must take swift action as it relates to significantly rising municipal government fees across
the GTA, such as development charges which are largely borne by home buyers. City of Toronto
Council should reflect on its recently approved 46 per cent increase to development charges, bringing
the average cost of all government charges and fees to an astounding $350,000+ for every new
detached house and over $180,000 for a new condominium. We do commend the City for providing an
exemption from development charges for up to three additional units on single lots which will encourage
more missing middle multiplex housing, but this exemption alone is not enough. Every level of
government agrees that the GTA needs more homes. Governments must stop their reliance on
significant charges and fees on new homes and unpredictable taxes on existing homes or we will
continue to see a growing housing crisis that will eventually inhibit the growth of the GTA’s economy.
With a municipal election this fall, governments will be judged based on the steps they take,” added
Crigger.

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