May's numbers are in and as buyers adjust to increased borrowing costs, the market has become more balanced which has provided buyers with more negotiating power. As a result, while benchmark and average home prices were up substantially compared to last year, selling prices overall trended lower seasonally.
As outlined in this months infographic, Toronto's average selling price of $1,212,806 for May 2022 was down -3.43 precent compared to April 2022, indicating balanced market conditions and presenting more options for buyers with the number of active listings up +9.88 percent in the same period.
If you find interest in the cottage country market, Muskoka District reported a +12 percent increase in the average sale price to $1,402,933 seasonally (Compared to April 2022).
On street level, buyers are adjusting to the increase in borrowing costs, realizing that the stigma of decreasing prices is only temporary. Considering that the unemployment rate down to 5.2% in May/employment growth edging upwards and increasing immigration, demand is increasing. There is talk of another 50 basis point interest rate hike on July 13th.