(Toronto) The Greater Toronto real estate market is leveling out, with home sales falling 39% in May from the same month last year, while prices rose nearly 10%, the region’s real estate board said on Friday.
Posted at 12:40 p.m.
Home sales rose to 7,283 last month from 11,903 in May 2021. A total of 7,989 transactions were recorded in April.
The real estate board attributed the drop in sales to higher borrowing costs, which materialized due to rising interest rates and were coupled with inflationary pressures that weighed on spending.
However, the body found buyers had more bargaining power last month as the market began to balance out.
In recent weeks, real estate agents have pointed out that the pace of sales is not as torrid as it was at the start of the year. Many sellers are now garnering fewer bids and bidding wars for their homes, pushing some to accept a lower price than they might have gotten a few months ago.
The average home price hit $1,212,806 in May, up more than 9% from $1,108,124 in the same month last year.
However, the average home price remained below the high of $1,253,567 reached in April.