Ontario State of the Market Update: May 2022

The Ontario Real Estate Association (OREA) reported 19,279 home sales in May, continuing the downward trend month over month.1 Coupled with an increase in new listings and active listings, the market was driven further into balanced conditions, leading to a modest increase in average price year over year of 9% and a 5% decrease month over month.  

New listings totalled 43,141 across the province in May, an increase of 9% both year over year and month over month. At the same time, sales decreased 32% year over year and 4% month over month, which resulted in the sales-to-new-listings (STNL) ratio continuing to fall, now sitting at 45%. Ontario continues to be in a balanced market and is trending towards buyer’s market conditions (a STNL ratio of 40-60% is considered to be a balanced market).  

As for inventory at month-end, active listings saw a similar dramatic increase month over month as in April, rising 35% in May. This further increased the months of inventory by another 29% month over month, now sitting at 1.8 months. The stark increase in inventory paired with a decline in sales is reflected in the average selling price, which continued its downward trend month over month, decreasing another 5%. However, the average selling price saw an increase of 9% year over year and sits at $940,485.  

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Map of Ontario showing where FairSquare operates

Toronto 

Toronto is teetering on a buyer’s market and balanced market conditions in May, as the sales-to-new-listings (STNL) ratio fell to 39% (A STNL ratio of 40-60% is considered to be balanced conditions, and under 39% is considered to be a buyer’s market). Although the STNL ratio indicates more buyer-friendly conditions, homes are only selling one day slower compared to April, despite the 29% increase in active listings over the same time period. In addition, average selling prices are holding steady, up 13% year over year and down just 1% month over month. Buyer demand appears to still be high for all product types and the average selling price continues to be well over $1 million for townhomes, semi-detached homes, and detached homes.  

The Toronto Regional Real Estate Board (TRREB) reports2 3 4:

  • Market: Buyer's Market 
  • Sales: 2,679 (down 43% year over year and down 11% month over month) 
  • New listings: 6,877 (down 8% year over year and up 12% month over month)
  • Active listings: 5,970 (up 29% year over year and up 26% month over month) 
  • Sales-to-new-listings ratio: 39% (previous month was 49%) 
  • Average days on market: 13 (up 18% year over year and up 8% month over month) 
  • Average detached selling price: $1,914,890 (up 13% year over year and down 2% month over month) 
  • Average semi-detached selling price: $1,426,273 (up 9% year over year and down 5% month over month) 
  • Average townhouse selling price: $1,238,845 (up 2% year over year and down 8% month over month) 
  • Average condo selling price: $793,124 (up 9% year over year and down 3% month over month)
  • All residential average selling price: $1,233,748 (up 13% year over year and down 1% month over month) 

Comments from TRREB President Kevin Crigger: “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.” 

Peel

Active and new listings greatly outpaced home sales in May which resulted in the Peel region continuing to see buyer’s market conditions based on the sales-to-new-listings (STNL) ratio of 37%. The increase in supply helped decrease average selling prices by 5% month over month, though average prices are still up 14% year over year and are well over $1 million. Homes are also taking two days longer to sell on average compared to April, which supports active listings increasing 15% month over month after a substantial boost in April.

The Toronto Regional Real Estate Board (TRREB) reports2 3 4:

  • Market: Buyer's Market
  • Sales: 1,377 (down 50% year over year and down 10% month over month)
  • New listings: 3,676 (down 13% year over year and down 6% month over month)
  • Active listings: 2,952 (up 40% year over year and up 15% month over month)
  • Sales-to-new-listings ratio: 37% (previous month was 39%)
  • Average days on market: 12 (up 20% year over year and up 20% month over month)
  • Average detached selling price: $1,524,568 (up 15% year over year and down 6% month over month)
  • Average semi-detached selling price: $1,074,004 (up 16% year over year and down 6% month over month)
  • Average townhouse selling price: $994,969 (up 16% year over year and down 4% month over month)
  • Average condo selling price: $661,237 (up 17% year over year and down 6% month over month)
  • All residential average selling price: $1,180,883 (up 14% year over year and down 5% month over month)

Comments from TRREB Chief Market Analyst Jason Mercer: “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.”

Durham

Durham remained in balanced market conditions in May for the third consecutive month, as new listings continued to outpace sales. Even after substantial increases in active listings in March and April, homes on the market increased further this month, though more modestly, up 9% month over month. The increase in active listings helped decrease average selling prices. All product types saw month-over-month decreases in average selling prices, upwards of 8%. Although the average selling price is still up 11% year over year, the average price for a home in the Durham region fell below the $1 million mark.

The Toronto Regional Real Estate Board (TRREB) reports2 3 4:

  • Market: Balanced Market
  • Sales: 1,025 (down 42% year over year and down 6% month over month)
  • New listings: 2,261 (down 3% year over year and down 3% month over month)
  • Active listings: 1,391 (up 58% year over year and up 9% month over month)
  • Sales-to-new-listings ratio: 45% (previous month was 47%)
  • Average days on market: 10 (up 11% year over year and up 25% month over month)
  • Average detached selling price: $1,094,693 (up 10% year over year and down 8% month over month)
  • Average semi-detached selling price: $812,146 (up 9% year over year and down 7% month over month)
  • Average townhouse selling price: $907,885 (up 19% year over year and down 2% month over month)
  • Average condo selling price: $633,509 (up 29% year over year and down 4% month over month)
  • All residential average selling price: $995,668 (up 11% year over year and down 7% month over month)

Comments from TRREB President Kevin Crigger: “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.”

York

York region continued to see buyer’s market conditions in May, as indicated by the sales-to-new-listings (STNL) ratio of 35% (under 39% is considered to be a buyer’s market). Both sales and new listings decreased month over month to the tune of 11% and 4%, respectively, and active listings increased 11% over the same time period, adding more inventory to the market. The increase in active listings caused average days on market to increase by two days compared to April. As a result of increased inventory and softer demand, average selling prices decreased 4% month over month, but are still up 7% year over year.

The Toronto Regional Real Estate Board (TRREB) reports2 3 4:

  • Market: Buyer's Market
  • Sales: 1,100 (down 55% year over year and down 11% month over month)
  • New listings: 3,151 (down 22% year over year and down 4% month over month)
  • Active listings: 2,954 (up 9% year over year and up 11% month over month)
  • Sales-to-new-listings ratio: 35% (previous month was 38%)
  • Average days on market: 14 (up 17% year over year and up 17% month over month)
  • Average detached selling price: $1,677,250 (up 8% year over year and down 5% month over month)
  • Average semi-detached selling price: $1,168,539 (up 12% year over year and down 7% month over month)
  • Average townhouse selling price: $1,169,062 (up 13% year over year and down 8% month over month)
  • Average condo selling price: $780,703 (up 17% year over year and up 3% month over month)
  • All residential average selling price: $1,369,657 (up 7% year over year and down 4% month over month)

Comments from TRREB Chief Market Analyst Jason Mercer: “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.”

Halton

The Halton region remained in a balanced market in May for the third consecutive month. Sales were at par month over month while new listings declined marginally by 2%. Unlike sales and new listings, the volume of active listings at month end increased by 12% month over month, which is encouraging for buyers. The increase in active listings caused homes to sit two days longer on market than the month previous and impacted average selling prices, which decreased by 5%. The region is seeing more inventory on the market and pricing is reflecting that.

The Toronto Regional Real Estate Board (TRREB) reports2 3 4:

  • Market: Balanced Market
  • Sales: 826 (down 41% year over year and at par month over month)
  • New listings: 1,893 (down 4% year over year and down 2% month over month)
  • Active listings: 1,426 (up 51% year over year and up 12% month over month)
  • Sales-to-new-listings ratio: 44% (previous month was 43%)
  • Average days on market: 12 (up 20% year over year and up 20% month over month)
  • Average detached selling price: $1,643,570 (up 7% year over year and down 8% month over month)
  • Average semi-detached selling price: $1,077,615 (up 9% year over year and down 2% month over month)
  • Average townhouse selling price: $1,070,756 (up 13% year over year and down 3% month over month)
  • Average condo selling price: $790,342 (up 17% year over year and up 6% month over month)
  • All residential average selling price: $1,313,651 (up 9% year over year and down 5% month over month)

Comments from TRREB President Kevin Crigger: “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.”

Ottawa

The Ottawa market is teetering between seller’s market and balanced market conditions, as indicated by the sales-to-new-listings (STNL) ratio of 59% (balanced market conditions is considered to be between 40-60%). The case for balanced conditions is supported by sales decreasing 2% and new listings increasing 10% month over month, adding more inventory to the market. Despite an increase in new listings, average selling prices saw little movement compared to April; condominium-class properties decreased by 3% and residential-class properties were at par month over month.

The Ottawa Real Estate Board (OREB) reports5:

  • Market: Balanced Market
  • Sales: 1,846 (down 19% year over year and down 2% month over month)
  • New listings: 3,120 (at par year over year and up 10% month over month)
  • Sales-to-new-listings ratio: 59% (previous month was 66%)
  • Number of condominium-class properties sold: 462 (down 11% year over year and down 2% month over month)
  • Number of residential-class properties sold: 1,384 (down 22% year over year and down 3% month over month)
  • Average condo selling price: $802,393 (up 8% year over year and down 3% month over month)
  • Average residential selling price: $472,920 (up 11% year over year and at par month over month)

Comments from OREB President Penny Torontow: “With year-over-year resales declining in March and April, and now with this downward trend continuing into May, traditionally the highest performing month for resales, it is quite clear that Ottawa’s resale market is shifting away from the blazing pace of 2021. And if rising interest rates, cost of living, and inflation aren’t enough factors to cause a pullback, the powerful and deadly storm that brought our city to its knees last month has justifiably impacted the market as well.”

Hamilton-Burlington

Balanced market conditions in the Hamilton-Burlington region persisted as new listings continued to outpace home sales bringing the sales-to-new-listings (STNL) ratio to 47% (a ratio of 40%-60% is considered to be a balanced market). The increase in new listings helped decrease average selling prices by 2% month over month. However, compared to the same time last year, home prices are still up 18%, despite expanded choice for buyers.

The REALTORS® Association of Hamilton-Burlington (RAHB) reports6:

  • Market: Balanced Market
  • Sales: 1,232 (down 32% year over year and down 5% month over month)
  • New listings: 2,631 (up 16% year over year and up 7% month over month)
  • Sales-to-new-listings ratio: 47% (previous month was 53%)
  • Average selling price in Hamilton: $901,535 (up 13% year over year and down 5% month over month)
  • Average selling price in Burlington: $1,231,174 (up 23% year over year and at par month over month)
  • Average selling price in Niagara North: $1,141,374 (up 34% year over year and up 6% month over month)
  • Average selling price in Haldimand County: $716,604 (down 18% year over year and down 10% month over month)
  • All residential average selling price: $995,408 (up 18% year over year and down 2% month over month)

Comments from RAHB President Lou Piriano: “Overall, sales activity was below typical May levels likely due to buyers sitting on the sidelines as mortgage interest rates continue to rise. In May, the residential average sale price also dipped marginally from the previous month to $995,408, just below the million dollar mark, for the first time this year after holding steady since January 2022. However, as increased inventory comes to the market, buyers have more selection, which may also lend to further negotiation power."

Niagara 

The Niagara region is teetering between balanced market and buyer’s market conditions in May, as new listings continued to outpace sales, up 7% and down 16% month over month, respectively. This brought the sales-to-new-listings ratio from 51% in April to 40% in May, continuing to bring inventory relief to the market and trending towards a buyer’s market. As a result, the average days on market increased month-over-month by one additional day, while the average selling price decreased 3%.

The Niagara Association of REALTORS® (NAR)7:

  • Market: Balanced Market
  • Sales: 595 (down 37% year over year and down 16% month over month)
  • New listings: 1,480 (up 19% year over year and up 7% month over month)
  • Sales-to-new-listings ratio: 40% (previous month was 51%)
  • Average days on market: 15 (up 7% year over year and up 7% month over month)
  • Benchmark price for a home in St. Catharines: $711,800 (up 20% year over year and down 7% month over month)
  • Benchmark price for a home in Niagara Falls: $786,900 (up 25% year over year and up 3% month over month)
  • Benchmark price for a home in Welland: $649,600 (up 22% year over year and down 1% month over month)
  • Benchmark price for a home in Fort Erie: $652,200 (up 22% year over year and down 2% month over month)
  • Overall benchmark price for a home in the Niagara region: $790,500 (up 22% year over year and down 3% month over month)

Comments from NAR President Jim Brown: "The trend continues toward a Buyer’s market in Niagara. This trend is backed by increased inventory and a reduction in the number of sales months over month. Although the HPI Benchmark Price shows strong growth, year over year; this indicator continues to fall from a record high in February of this year.”

Kitchener-Waterloo

A decrease in sales coupled with an increase in new listings resulted in the sales-to-new-listings (STNL) ratio decreasing further from 50% in April to 46% in May, indicating the Kitchener-Waterloo region remains in balanced market conditions, but is trending towards a buyer’s market. The 28% increase in active listings month over month influenced homes sitting on the market for two additional days compared to April, as well as selling for 4% less over the same time period. Year over year, average prices still remain up an impressive 18%.

The Kitchener-Waterloo Association of REALTORS® (KWAR) reports8 9:

  • Market: Balanced Market
  • Sales: 661 (down 23% year over year and up 4% month over month)
  • New listings: 1,422 (up 34% year over year and up 11% month over month)
  • Active listings: 902 (up 98% year over year and up 28% month over month)
  • Sales-to-new-listings ratio: 46% (previous month was 50%)
  • Average days on market: 11 (up 22% year over year and up 22% month over month)
  • Average detached selling price: $1,016,834 (up 17% year over year and down 4% month over month)
  • Average semi-detached selling price: $730,768 (up 11% year over year and down 7% month over month)
  • Average townhome selling price: $708,722 (up 18% year over year and down 7% month over month)
  • Average apartment-style condominium selling price: $545,825 (up 20% year over year and down 9% month over month)
  • All residential average selling price: $875,194 (up 18% year over year and down 4% month over month)

Comments from KWAR President Megan Bell: "The increase by the Bank of Canada to the key interest rate in April had the predictable result of knocking some buyers down if not out of the market in May. While the impact to prices is small, it has had a critical impact on some buyers and what they can now afford."

Guelph

The Guelph region saw a double-digit decrease in sales year over year, coupled with a double-digit increase in new listings during the same period. As a result, the region dove deeper into a balanced market and is trending towards buyer’s market conditions seeing the sales-to-new-listings (STNL) ratio decrease from 49% to 45% month over month (a ratio of 40%-60% is considered to be a balanced market). Both a decrease in sales and an increase in new listings led to an astounding 77% increase in active listings compared to this time last year and a 27% increase month over month. The sharp increase in inventory is reflected in the 6% month over month decrease in overall benchmark price for a home, now sitting at $944,400, however the benchmark price of a home is still up 19% year over year.

The Guelph and District Association of REALTORS (GDAR) reports10:

  • Market: Balanced Market
  • Sales: 407 (down 32% year over year and down 3% month over month)
  • New listings: 895 (up 21% year over year and up 4% month over month)
  • Active listings: 678 (up 77% year over year and up 27% month over month)
  • Sales-to-new-listings ratio: 45% (previous month was 49%)
  • Benchmark price for a detached home: $1,044,400 (up 18% year over year and up 1% month over month)
  • Benchmark price for a townhome: $767,500 (up 24% year over year and up 5% month over month)
  • Benchmark price for a condominium: $636,300 (up 33% year over year and down 1% month over month)
  • Overall benchmark price for a home: $944,400 (up 19% year over year and down 6% month over month)

Comments from GDAR President Dustin Davis: “Home sales were down from last year’s May record to below-average levels, a trend that we’re seeing play out across almost every market in the Greater Golden Horseshoe region as higher interest rates take effect. The positive side of this is that we’re also seeing a very strong influx of new supply, which is lifting overall inventories from historical lows and restoring balance to a market that has seen unprecedented tightness over the past two years. We’re hoping this will prompt some previously sidelined would-be buyers to return to the market as well as more listings become available.”

London

After a modest increase in new listings in April, the London region in May saw a more sizeable increase in new listings month over month, up 14%. The increase in new listings coupled with a decrease in sales, resulted in the sales-to-new-listings (STNL) ratio decreasing from 55% in April to 46% in May. This indicates the London region continues to experience balanced market conditions. This is further supported by the 42% increase in active listings month over month, which influenced average days on market to increase by one day and average selling prices for all product types to decrease by 1%.

The London and St. Thomas Association of REALTORS® (LSTAR) reports11 12:

  • Market: Balanced Market
  • Sales: 844 (down 31% year over year and down 4% month over month)
  • New listings: 1,835 (up 25% year over year and up 14% month over month)
  • Active listings: 1,436 (up 108% year over year and up 42% month over month)
  • Sales-to-new-listings ratio: 46% (previous month was 55%)
  • Median days on market: 9 (up 50% year over year and up 13% month over month)
  • Average detached selling price: $818,977 (up 18% year over year and down 3% month over month)
  • Average townhouse selling price: $605,333 (up 23% year over year and down 2% month over month)
  • Average condo selling price: $465,364 (up 18% year over year and down 2% month over month)
  • All residential average selling price: $762,397 (up 20% year over year and down 1% month over month)

Comments from LSTAR President Randy Pawlowski13: “Even if in May the sales-to-new listings ratio dropped to 46%, a figure that, typically, indicates a market that tends to favour home buyers, benchmark and average prices saw only modest month-over-month declines. Compared to last year’s figures, both of these values are substantially higher.”

Windsor

A significant boost in new listings in the past several months, including May, compared to the first two months of 2022 has aided in adding considerable inventory to the Windsor market. Since sales did not keep pace with new listings, it caused the sales-to-new-listings (STNL) ratio to drop to 41%, indicating the region is now teetering between balanced market and buyer’s market conditions (40-60% is considered to be a balanced market). Average selling prices are still up over 15% year over year, however prices declined 7% compared to April.

The Windsor-Essex County Association of REALTORS® (WECAR) reports14 15 16:

  • Market: Balanced Market
  • Sales: 583 (down 21% year over year and down 1% month over month)
  • New listings: 1,438 (up 38% year over year and up 34% month over month)
  • Active listings: 1,099 (up 83% year over year and up 51% month over month)
  • Sales-to-new-listings ratio: 41% (previous month was 55%)
  • All residential average selling price: $647,331 (up 15% year over year and down 7% month over month)

Brantford

Active listings surged in May as they almost doubled month over month, up 97%. In fact, this was the largest number of new listings added in the month of May on record. The increase in new listings coupled with a decrease in sales resulted in the sales-to-new-listings (STNL) ratio decreasing substantially, from seller’s market conditions at 61% to market conditions at 45%. The increase in inventory supported the benchmark price dropping by 4% month over month but is still up 22% year over year.

The Brantford Regional Real Estate Association (BRREA) reports17:

  • Market: Balanced Market
  • Sales: 211 (down 34% year over year and down 17% month over month)
  • New listings: 466 (up 27% year over year and up 11% month over month)
  • Active listings: 379 (up 82% year over year and up 97% month over month)
  • Sales-to-new-listings ratio: 45% (previous month was 61%)
  • Benchmark price for a detached home: $816,300 (up 21% year over year and down 5% month over month)
  • Benchmark price for a townhome: $714,200 (up 31% year over year and up 24% month over month)
  • Benchmark price for a condominium: $456,000 (up 46% year over year and up 12% month over month)
  • Overall benchmark price for a home: $791,600 (up 22% year over year and down 4% month over month)

Barrie and Simcoe County

Barrie and Simcoe County saw little change month over month in terms of sales and new listings, up 2% and 1%, respectively. As a result, the sales-to-new-listings (STNL) ratio remained at 38% keeping the region in a buyer’s market. Active listings increased a substantial 28% month over month, continuing to add inventory to the market. Benchmark selling prices for detached homes returned to above the $1M mark, and average selling prices for all product types increased 2% month over month and are up 36% year over year.

The Barrie & District Association of REALTORS® reports18:

  • Market: Buyer's Market
  • Sales: 426 (down 36% year over year and up 2% month over month)
  • New listings: 1,122 (up 26% year over year and up 1% month over month)
  • Active listings: 928 (up 86% year over year and up 28% month over month)
  • Sales-to-new-listings ratio: 38% (previous month was 38%)
  • Benchmark price for a detached home: $1,003,100 (up 26% year over year and up 2% month over month)
  • Benchmark price for a townhome: $680,900 (up 26% year over year and at par month over month)
  • Benchmark price for a condominium: $619,100 (up 22% year over year and up 4% month over month)
  • Overall benchmark price for a home: $955,600 (up 26% year over year and up 2% month over month)

Comments from BDAR President Luc Woolsey: "Our market is very well supplied at the moment, with the highest number of new listings in any May in history bringing some much-needed relief to the supply side and restoring balance to the market. With conditions finally appearing to move out of the unprecedented tightness of the past two years and available listings on the market rising from historical lows we might begin seeing previously sidelined buyers return to the market.”

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If you need to sell or buy a home, a FairSquare Group Realty agent can help you navigate the market safely and with professional insight. FairSquare Group Realty supports Canadians by providing full-service real estate experiences with incredible rewards: sellers save thousands in commission and buyers receive  when they purchase a home with one of our REALTORS®. Call 1-855-999-9740 to learn more. 

†The Canadian Real Estate Association calculates benchmark prices using the MLS® Home Price Index (HPI), which uses data from a region to define a “typical” home. Benchmark prices can reflect the changes to a region’s property value far more accurately than average or median prices. Statistics presented herein are rounded to the nearest whole number for readability. Exact statistics can be found using the references provided. *Cash back – How the Home Buying Service cash back works: FairSquare Group Realty will share with the buyer the commission it receives from the seller’s agent up to a maximum of $2,000 in cash back. No cash back if the commission received is lower than $5,000. Where available.

On December 1, 2021, Purplebricks rebranded to FairSquare Group Realty. Blog articles published before this date were created under the Purplebricks brand but remain the property of FairSquare Group Realty.

In January 2019, ComFree Commonsense Network Brokerage rebranded to Purplebricks.