The Greater Toronto rollercoaster might be giving detached sellers that sinking feeling. Toronto Regional Real Estate Board (TRREB) data shows detached prices fell in July. The benchmark for single-family units fell by tens of thousands in the month. Some markets even saw prices fall over $100,000 in the 31 day period — yikes. But it’s great news for buyers, in theory.
Greater Toronto Detached Real Estate Fell $69k In July
Greater Toronto detached real estate prices made a sharp drop last month. The benchmark across the region fell to $1,455,000 in July, down 4.5% (-$68,600) in just one month. Demand has been softening as rates increase and exuberance dissipates. The segment is now in a buyer’s market, where prices are expected to fall even further.
Not even the City of Toronto’s coveted detached homes were immune to the mayhem. The benchmark price fell to $1,724,200 in July, down 3.7% (-$66,600) for the month. Just the move in July was nearly half the amount needed for a market to be a “technical correction.” That highlights just how fast this market is falling. Risk happens fast, but this is lightspeed.
Greater Toronto Detached Real Estate Prices
The benchmark price of a single-family detached home for various regions across Greater Toronto.
Source: TRREB; Better Dwelling.
Detached Home Prices Fell As Much As 8% Last Month
Detached home prices are falling fastest in the exurbs (distant suburbs). Leading the decline lower was Oakville (-8.3%), King (-8.0%), and Halton (-6.6%). These are extremely fast rates of decline — imagine 1 in 13 dollars of equity vaporizing in the span of a month. At the same time, these were amongst the fastest growing regions for price over the past few years.
Greater Toronto Detached Real Estate Price Change
The change in dollars of the benchmark price of a single-family detached home for various regions across Greater Toronto from June to July of 2022.
Source: TRREB; Better Dwelling.
Easy come, easy go. Most of these owners are likely still swimming in equity, so it’s not all bad news.
Detached Prices Fell As Much As $178k In One Month
Very pricey detached homes combined with rapid declines leads to mind-blowing dollar drops. The biggest dollar drop was in King, prices fell $178,200 lower. Oakville wasn’t too far behind with a $157,800 drop, followed by Halton’s $104,300 plunge. These cities are seeing detached prices fall greater than the median annual household income… per month.
After such large gains over the past two years, it shouldn’t be surprising to see some sort of price moderation. The size and velocity of this decline is something never before seen in this market (or possibly any). Banks like RBC and BMO don’t expect the pain to ease soon, but have said it should be a welcome event to restore some market balance.
