MARKET QUICK LINKS: Toronto | Calgary | Edmonton | Vancouver
THE HALFWAY POINT: 2022 MARKETS DIP IN THE WAKE OF INTEREST RATE HIKES
While February 2022 may seem like a lifetime ago, it was a mere 4 months back that we witnessed record-breaking monthly sales and seemingly un-ending increases in monthly average prices across the country.
Today, we are experiencing our 3rd straight month of sales and price declines.
However, for perspective, even with these declines, sales and average prices today are still above 2021 (a record-breaking year) and even further ahead of 2018, 2019 and 2020.
In a higher-than-expected move, The Bank of Canada increased rates by 100 basis points on July 13, 2022. This is the largest increase since August 1998 and was the 4th interest rate increase in 2022.
With more increases expected further into the year, whispers of a recession may soon get louder. This pessimistic viewpoint has created a ripple effect that will tighten the economy and undeniably shift the real estate market further.
What can we expect in the coming months?
In each of the 4 Canadian markets in this post, sales and average price was down while active listings and months of inventory were up. This means that the red-hot seller’s market the country was experiencing in February has quickly turned into a balanced turning buyer’s market.
While some markets across the country have experienced a buyer’s market in the past, this one is different. Sellers are hoping (often demanding) to sell their property at February prices and buyers are reluctant to purchase until “they see what happens with the market.”
I believe we can expect that prices will continue to drop throughout the summer as this standoff between buyers and sellers continues.
What should you be doing now?
This is an opportunity for you, as a real estate professional, to step up and offer insight to the plethora of headlines that your buyers and sellers are hearing in the news. Yes, sales and prices have dropped since 2021, but remember, 2021 was the single largest sales year ever, and I think we can all agree that these numbers were simply not sustainable.
Let these shifts in the market be the catalyst for you to provide balanced, educational, and timely expertise to your community. Help your customers understand what interest rates mean to a buyer’s bottom line and what waiting means to a seller’s bottom line.
For a deeper dive into each of the 4 major Canadian markets below, watch my market update videos below.
And remember, it’s a beautiful life, make it count!
Richard Robbins
CEO
TORONTO, ON
Click here to download Toronto’s Q2 2022 market slides.
The Toronto Regional Real Estate Board (TRREB) is reporting an 11.1% decrease in month-over-month sales for June 2022. The average price also slipped 5.5% and now sits at $1,146,254, respectively. TRREB is reporting its third consecutive month of declining sales and fourth consecutive month of declining average price.
Other TRREB Highlights:
Total sales from January to June (Q1 & Q2) totalled 47,453 while total sales from the same time period a year prior totalled 70,270.
Year-over-year, the average price rose 5.2% to $1,146,254.00 in June 2022 from $1,089,536.00 in June 2021.
Video Highlights:
5-Year Comparison for Monthly Sales (2018-2022 YTD)
5-Year Comparison for Monthly Average Price (2018-2022 YTD)
5-Year Comparison for January to June Total Sales (2018-2022)
2022 Month-Over-Month Comparison Graph (January-June)
CALGARY, AB
Click here to download Calgary’s Q2 2022 market slides.
The Calgary Real Estate Board is reporting a 7.5% decrease in month-over-month sales for June 2022. The average price also slipped slightly by 0.6% and now sits at $517,059, respectively. CREB is reporting its third consecutive month of declining sales and fourth consecutive month of declining average price.
Other CREB Highlights:
Total sales from January to June (Q1 & Q2) totalled 18,735 while total sales from the same time period a year prior totalled 15,060.
Year-over-year, the average price rose 4.6% in June 2022 to $517,059 from $494,111 in June 2021.
Video Highlights:
5-Year Comparison for Monthly Sales (2018-2022 YTD)
5-Year Comparison for Monthly Average Price (2018-2022 YTD)
5-Year Comparison for January to June Total Sales (2018-2022)
2022 Month-Over-Month Comparison Graph (January-June)
EDMONTON, AB
Click here to download Edmonton’s Q2 2022 market slides.
The REALTOR® Association of Edmonton is reporting a 9.2% decrease in month-over-month sales for June 2022. The average price also slipped slightly by 1.1% and now sits at $405,776, respectively. RAE is reporting its third consecutive month of declining sales but just its second consecutive month of declining average price.
Other RAE Highlights:
Total sales from January to June (Q1 & Q2) totalled 15,249 while total sales from the same time period a year prior totalled 13,551.
Year-over-year, the average price rose 1.9% in June 2022 to $405,776 from $398,756 in June 2021.
Video Highlights:
5-Year Comparison for Monthly Sales (2018-2022 YTD)
5-Year Comparison for Monthly Average Price (2018-2022 YTD)
5-Year Comparison for January to June Total Sales (2018-2022)
2022 Month-Over-Month Comparison Graph (January-June)
VANCOUVER, BC
Click here to download Vancouver’s Q2 2022 market slides.
The Real Estate Board of Greater Vancouver is reporting a hefty 16.2% decrease in month-over-month sales for June 2022. The average price also slipped by 2% and now sits at $1,235,900, respectively. REBGV is reporting its third consecutive month of declining sales but just its second consecutive month of declining average price.
Other REBGV Highlights:
Total sales from January to June (Q1 & Q2 2022) totalled 18,647 while total sales from the same time last year (2021) totalled 24,752. A substantial year-over-year drop.
Year-over-year, however, the benchmark price rose 5.2% in June 2022 to $1,125,900 from $1,175,100 in June 2021.
Video Highlights:
5-Year Comparison for Monthly Sales (2018-2022 YTD)
5-Year Comparison for Monthly Average Price (2018-2022 YTD)
5-Year Comparison for January to June Total Sales (2018-2022)
2022 Month-Over-Month Comparison Graph (January-June)