TORONTO, ONTARIO, June 3, 2022 – Greater Toronto Area (GTA) housing market conditions
continued to evolve in response to higher borrowing costs. Similar to April results, May 2022 sales
were down on a monthly and annual basis. Conversely, active listings at the end of May were up on a
month-over-month and year-over-year basis. More balanced market conditions have provided buyers
with more negotiating power. As a result, while benchmark and average home prices were up
substantially compared to last year, selling prices trended lower on a month-over-month basis.
“Bank of Canada rate hikes, including the 50-basis point hike on June 1, are impacting home buyers
in the short term. There is now a psychological aspect where potential buyers are waiting for a bottom
in price. This will likely continue through the summer. However, as home buyers adjust to higher
borrowing costs, housing demand will be supported by extremely low unemployment, high job
vacancies, rising incomes and record immigration,” said TRREB President Kevin Crigger.
GTA REALTORS® reported 7,283 sales through TRREB’s MLS® System in May 2022 – down 38.8
per cent compared to May 2021 and down nine per cent compared to April 2022. The number of new
May listings was similar to last year’s level and edged up on a month-over-month basis. With sales
down and new listings trend flat to slightly up, the number of active listings was up on a year-overyear
basis by 26 per cent.
Market conditions remained tight enough to support an overall average selling price of $1,212,806 for
May 2022, representing an annual growth rate of 9.4 per cent. The MLS® Home Price Index
Composite Benchmark was also up on a year-over-year basis by 23.9 per cent. On a month-overmonth
basis, both price metrics were lower, reflecting more balanced market conditions.
“Price trends observed over the past three months – both in terms of moderating annual growth rates
and the recent month-over-month dips – are in line with TRREB’s forecast for 2022. After a strong
start to the year, the current rate tightening cycle has changed market dynamics, with many potential
home buyers putting their purchase on hold. This has led to more balance in the market, providing
buyers with more negotiating power,” said TRREB Chief Market Analyst Jason Mercer.