Zoocasa
Sold Prices
Map
Market Insights
  • Blog Home
  • For Buyers
  • For Sellers
  • Real Estate News
  • Mortgage News in Canada
  • Free Guides (PDF)
  • Real Estate Infographics
Zoocasa
  • Blog Home
  • For Buyers
  • For Sellers
  • Real Estate News
  • Mortgage News in Canada
  • Free Guides (PDF)
  • Real Estate Infographics
Home Affordability

June 2022 Home Sales BELOW The 10-Year Average Across Canada: CREA

Daniel Crook by Daniel Crook
July 15, 2022
in Affordability, Buying a Home, Infographics, Real Estate News, Selling Your Home
Reading Time: 4 mins read
Share
Tweet
Share
0 Shares

June saw just over 40,000 houses sold, dipping below the 10-year monthly average, with the number of transactions coming in -23.9% below last year’s record setting figures, according to the Canadian Real Estate Association (CREA). The number of homes changing hands also dipped month-over-month by -5.6%,

Many attribute the decline in sales to the rising interest rates, but other factors include; a wait-and-see approach towards housing prices, the rising cost of living with record high inflation, buyer fatigue or even rising gas prices, as a longer commute would provide uncertainty about where to live.

Available inventory has seen an improvement in the last couple of months, and June followed that trend, with the number of newly listed homes climbing 4.1% month-over-month. A jump in new supply in Montreal was a major factor driving the overall growth rate whilst new listings in the GTA and Greater Vancouver did see small declines. There were 3.1 months of inventory recorded on a national basis, and while still historically low it is an increase from the tightest conditions ever recorded at the start of 2022. 

  • Read: The Best Places to Buy Real Estate in Canada in 2022

With slightly higher stock comes slightly lower prices. While the seasonally adjusted aggregate MLS Home Price Index Benchmark Price is still just over 15% higher year-over-year, there are noticeable month-over-month declines. The current average home price is $807,400, -3.3% lower than it was three months ago and -1.9% lower than in May.

Mortgage qualifications having a large influence on the market

While the lack of supply was driving up house prices in earlier parts of the year, the cost of borrowing has overtaken it as the dominant factor affecting the current housing market. As interest rates continue to rise it will have a direct impact on the amount buyers can qualify for under the stress-test. This will likely continue to have downward pressure on home prices for the remainder of the year.

  • Read: How BoC’s Largest Rate Increase Since 1998 Will Impact Existing Variable Rate Mortgages

Fixed and variable rate mortgages have different qualification criteria, and while variable rates adjust in real time, fixed rate mortgages have already factored in most of what the Bank of Canada is expected to do throughout 2022. Shaun Cathcart, CREA’s Senior Economist, says: “It’s no surprise to see people piling into variable rate mortgages at record levels, but probably not for the reasons they may have chosen them in the past. The 200 basis points plus the contract rate element of the stress test has, just since April, become much more difficult to pass if you want a fixed-rate mortgage. It made sense when rates were at a record low, but policymakers may want to assess if it continues to meet its policy objectives now that fixed mortgage rates are back at more normal levels.”

Some markets are becoming more affordable as prices drop more dramatically 

Most of the monthly declines have been seen in markets in Ontario, while Quebec are just now beginning to show small signs of softening. Prices continue to be mostly flat across the Prairies, while they have eased in parts of British Columbia, with the East Coast being the major area of the country continuing to show price gains.

In Ontario, nearly every major area has seen some sort of price decline. Areas such as Simcoe and District, Northumberland Hills, Kawartha Lakes and London and St Thomas have seen price declines of over 6% month over month. 

Toronto

Greater Toronto has seen a slight price dip month-over-month, with the Benchmark Price dropping -2% in June to $1,210,600. Year-over-year it is still up 18.1%. There has been a slight dip in new listings in the area, dropping -1.4% month-over-month to 13,306 while sales have also dropped by -5.4% to 5,905.

Bancroft and Area

Bancroft is a bit of an outlier in that it is the only major area in the Ontario region to still be showing price gains month-over-month. The HPI Benchmark Price in June was $534,500, a 3.5% increase over May, 19.5% up year-over-year.

Kawartha Lakes

Kawartha Lakes has seen a stark decline in the last month, with the average benchmark price dipping -10.8% to $712,900. 188 units were sold in June, an -18.6% decline from last year. There were, however, 267 new listings last month, which was a 31.5% increase from June 2021.

Ottawa

Ottawa has seen a much more modest dip than other areas in Ontario month-over-month, with the benchmark price dropping only -0.6% to $688,200, still 8.3% higher than June of last year. Residential inventory has risen by 38% over last year, with 3,213 new listings on the market last month.

Previous Post

How BoC’s Largest Rate Increase Since 1998 will Impact Existing Variable Mortgages

Next Post

How to Budget for a Down Payment

Daniel Crook

Daniel Crook

Daniel Crook is a Content Marketing Specialist at Zoocasa. Daniel’s insights provide home buyers and sellers with knowledge of local and national markets to aid them in their real estate pursuits. Daniel covers a multitude of topics, ranging from mortgages to local market trends, as well as data-driven reports uncovering national trends. His work has been featured in outlets such as BNN Bloomberg, CTV News, the National Post and the Globe and Mail. You can find all his latest insights on the Zoocasa blog.

Related Posts

A woman sitting in the driver's seat of a car
Affordability

Trade Your New Car Budget for a Down Payment in These Affordable U.S. Cities

July 3, 2025
Affordability Reports

Same Size, Better Deal: Canadian Cities That Outshine Their U.S. Counterparts in Affordability

June 25, 2025
Buying a Home

10 Cheapest Homes For Sale in Florida: Where to Find Budget-Friendly Options in the Sunshine State

June 22, 2025

Blog Search

No Result
View All Result

Newsletter Sign-up

Join a community of 130,000+ subscribers. Don't miss important real estate news, market data, and buying and selling tips.

Recent Articles

Two people relax in a pool, one wearing a straw hat, enjoying a sunny day together.

The Real Cost to Own a Pool in 2025: From Build to Yearly Upkeep

July 5, 2025

6 Must-See Summer Festivals in the US and Where to Stay Nearby

July 4, 2025
A woman sitting in the driver's seat of a car

Trade Your New Car Budget for a Down Payment in These Affordable U.S. Cities

July 3, 2025

10 Years of Real Estate & A Look Towards the Future 

July 2, 2025

Featured Listings

5 Canadian Cottage Regions That Make the Perfect U.S. Buyer Getaway 

June 15, 2025

From Skyline Views to Private Escapes: 5 Luxe Calgary Homes for Sale

June 10, 2025

What it Means When a Home is Listed for $1

June 7, 2025

6 Can’t-Miss Victorian Homes for Sale in San Francisco Right Now

June 2, 2025
first-time home buyer programs and rebates

Social Media

250 The Esplanade Suite 408 Toronto, ON M5A 4J5

Stay Connected

  • Blog Home
  • For Buyers
  • For Sellers
  • Real Estate News
  • Mortgage News in Canada
  • Free Guides (PDF)
  • Real Estate Infographics
No Result
View All Result

Zoocasa © 2007–2022. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA.