June 2023 Real Estate Market Update

After month-over-month home price increases, the Greater Toronto Area (GTA) real estate market is displaying mixed signals, indicating a potential impending shift.

In June, the average price of properties in the GTA decreased by $13,972, resulting in a final price of $1,182,129. However, when compared to the previous year, average sale prices have still seen a significant increase of $35,875. This is the first time in 2023 that month-over-month values have dropped, but it also marks the first positive yearly comparison.

Overall inventory levels have continued to sluggishly rise, with 14,107 active listings at the end of June. While this represents an increase from May of more than 2,000 properties, the final total is still the second-lowest June inventory over the past decade. This has resulted in intensified competition among buyers for the limited available properties. For some willing buyers, this limited availability has meant they have been unable to find a home that meets their needs, which has prevented them from making a purchase and essentially sidelined them.

Sales, however, are still happening at a rapid pace, with properties selling on average in just 14 days for the second consecutive month. The market absorption rate remains remarkably robust, with 52.5% of available listings being sold in June, and properties achieving a sales price of 104% of the list price. This is the fifth month in a row that sales prices have surpassed the initial asking price.

Months of inventory at the end of June was 1.8 months, tilting the market in favour of sellers.

Looking ahead, buyers who have already secured pre-approved mortgages are likely to take advantage of their rate hold and make their purchase before it expires and summer ends, as the Bank of Canada has increased the interest rate by 50 basis points since June, bringing it to 5% — the highest it has been in more than two decades. Given CIBC’s leading economist expects another rate hike in early September, rising interest rates will likely have another (temporary) negative impact on the housing market, resulting in a stall.

When examining individual asset classes, the semi-detached market saw a monthly increase in average sales price of $16,687, while the detached, townhouse and condo markets experienced minor declines of 25,569, $29,729 and $7,821, respectively. Interestingly, on a year-over-year basis, the detached, semi-detached and townhouse markets have shown increases of $76,095, $90,149 and $58,990, respectively, while the condo market remains slightly below its value from the previous year by $7,821. Comparing current average sales prices to the market highs of 2022, condos have experienced an 8% decrease, semi-detached properties are down 10%, townhouses are down by 13%, and detached properties have decreased by 14%.

It is important to note that real estate investment is a long-term endeavour, and when compared to values five years ago, the market still presents appealing opportunities. Detached properties have appreciated by $497,423, semi-detached by $410,958, townhomes by $395,855 and condos by $178,298.

Here’s how the real estate market performed in six Etobicoke neighbourhoods in June. If interested in obtaining real estate data on another neighbourhood, contact Clare Tattersall at 647-625-3282 or clare@realtorontowest.com.

Alderwood
Average Home Price: $1,269,143
Number of Homes Sold: 12
Average Days on Market: 9

In the community of Alderwood, 12 homes sold in June 2023, representing an increase of 6 homes from the same month last year. The average selling price for homes rose by 4.7% to $1,269,143 in June 2023, from $1,212,500 a year earlier. Bungalows (4) and one-and-a-half-storey homes (3) combined accounted for more than half of all sales. Average days on market decreased to 9 days from 21 days year-over-year.

Average home prices for Alderwood for Q2 of 2023 are available here.

Islington-City Centre West
Average Home Price: $2,006,934
Number of Homes Sold: 20
Average Days on Market: 14

In the community of Islington-City Centre West, 20 homes sold in June 2023, representing an increase of 8 homes from the same month last year. The average selling price for homes rose by 36.4% to $2,006,934 in June 2023, from $1,471,333 a year earlier. This significant price increase may be partially attributed to the sale of higher end homes in June 2023. Bungalows (8) accounted for nearly half of all sales, followed by two-storey detached homes (7). Average days on market increased to 14 days from 11 days year-over-year.

Overall Average Condo Price: $667,500
Total Number of Condos Sold: 43
Average Days on Market: 15

In the community of Islington-City Centre West, 43 condominium apartments sold in June 2023, representing a decrease of 2 units from the same month last year. The overall average selling price fell by 1.9% to $667,500 in June 2023, from $680,407 a year earlier.

The average selling price for one-bedroom, one-bathroom condominium apartments fell by 2.2% to $547,333 in June 2023, from $559,375 in June 2022. Average days on market decreased to 9 days from 32 days over the same time period.

The average selling price for two-bedroom, two-bathroom condominium apartments fell by 8.8% to $725,750 in June 2023, from $795,591 in June 2022. Average days on market increased to 18 days from 12 days over the same time period.

Average home prices for Islington-City Centre West for Q2 of 2023 are available here.

Long Branch
Average Home Price: $1,279,843
Number of Homes Sold: 19
Average Days on Market: 19

In the community of Long Branch, 19 homes sold in June 2023, representing an increase of 11 homes from the same month last year. The average selling price for homes fell by 14.9% to $1,279,843 in June 2023, from $1,504,313 in June 2022. Three-storey townhomes (5), two-storey detached (4) and semi-detached homes (4) combined accounted for more than two-thirds of all sales. Average days on market increased to 19 days from 18 days over the same time period.

Average home prices for Long Branch for Q2 of 2023 are available here.

Mimico
Average Home Price: $1,572,824
Number of Homes Sold: 17
Average Days on Market: 17

In the community of Mimico, 17 homes sold in June 2023, representing an increase of 5 homes from the same month last year. The average selling price for homes rose by 1.8% to $1,572,824 in June 2023, from $1,545,000 a year earlier. Two-storey detached homes (8) accounted for nearly half of all sales, followed by townhomes (4). Average days on market increased to 17 days from 12 days year-over-year.

Overall Average Condo Price: $763,320
Total Number of Condos Sold: 52
Average Days on Market: 16

In the community of Mimico, 52 condominium apartments sold in June 2023, representing a decrease of 3 units from the same month last year. The overall average selling price for condominium apartments fell by 4.4% to $763,320 in June 2023, from $798,713 a year earlier.

The average selling price for one-bedroom, one-bathroom condominium apartments fell by 3% to $609,852 in June 2023, from $629,000 in June 2022. Average days on market decreased to 13 days from 19 days year-over-year.

The average selling price for two-bedroom, two-bathroom condominium apartments fell by 1.5% to $848,500 in June 2023, from $861,857 in June 2022. Average days on market decreased to 20 days from 24 days over the same time period.

Average home prices for Mimico for Q2 of 2023 are available here.

New Toronto
Average Home Price: $1,582,857
Number of Homes Sold: 7
Average Days on Market: 7

In the community of New Toronto, 7 homes sold in June 2023, representing an increase of 3 homes from the same month last year. The average selling price for homes rose by 26.1% to $1,582,857 in June 2023, from $1,255,139 a year earlier. This significant price increase may be partially attributed to the sale of higher end homes in June 2023. Bungalows (4) and two-storey detached homes (3) comprised all sales. Average days on market decreased to 7 days from 12 days year-over-year.

Average home prices for New Toronto for Q2 of 2023 are available here.

Stonegate-Queensway
Average Home Price: $2,061,650
Number of Homes Sold: 20
Average Days on Market: 13

In the community of Stonegate-Queensway, 20 homes sold in June 2023, representing a decrease of 6 homes over the same month last year. The average selling price for homes rose by 8.5% to $2,061,650 in June 2023, from $1,900,115 a year earlier. Two-storey detached homes (11) accounted for more than half of all sales, followed by bungalows (4). Average days on market remained constant at 13 days year-over-year.

Average home prices for Stonegate-Queensway for Q2 of 2023 are available here.

Overall average condo price includes all condo apartment configurations. One-bedroom condos include one bathroom only. Two-bedroom condos include two bathrooms only.