Greater Toronto Detached Real Estate Prices Dropped As Much As $178k Last Month

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.

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  • JP Lim 1 month ago

    I enjoy better dwrlling’s articles and analysis. Could you consider providing a bit of perspective on the price drops in homes, especially in Vancouver and Toronto area, but compare it to where it brings us to in terms of pricing. Prices have more than doubled in the past 10 years and this correction in prices bring us back to prices in 2021? How much further do prices have to fall to provide the same “relative” mortgage buyers were carrying say 10 or 20 years ago with current interest rates?

    • Thomas 1 month ago

      hard to satisfy everyone on this front. They’ve said before they try not to repeat the same point more than once a month, so if they published a peak-to-trough article they wouldn’t do another in the same month, just a change in article.

      It’s the opposite of the much more annoying take from MSM where they show year-over-year gains, but that’s not relevant to someone buying today since you don’t know if the house is getting cheaper or more expensive.

  • Anonymous 1 month ago

    How do people afford these houses? unless you are among the rich, these people just become ‘house poor’? It is so funny that now, boc is trying to control inflation, I think it’s too late but they have to try. I think more hikes are coming because it doesn’t seem enough, it’s not making a dent. So as I know, interest rate is there to control inflation, to cool down a hot economy and encourage people to save/spend less. The problem with that, I think, is because people sat on stimulus money or savings for 2.5 years-during pandemic! people could not go on vacation, travel, work on house project etc due to pandemic. Now, after 2.5 years, people are TIRED, they say life is short etc, so they go on a spending spree – going on vacation around the world, spend like crazy, can’t blame them, but inflation? what inflation, they have the I don’t care attitude (no fault of them). And this is against what boc had in mind and I think this is why inflation is not going down but going up again, thus boc will have to increase interest rate again and again, they are against the current and they should have done it while the housing market was extremely hot but kept fueling it with low interest rate (I might be wrong though……not). More, now the household debt is at almost 1.86?? The writings are on the wall. 100%.
    Let’s talk about layoffs? already happening and more coming.
    Let’s talk about Recession? already here…
    Let’s talk about the people who is about to renew their mortgage? how many will have to make that tough decision to sell?
    Let’s talk about the buyers who are getting excited that the house prices are going down but can’t pass the stress test and still can’t afford?
    Let’s talk about that bell curve where some will make it, some barely, some won’t? which one will you be?
    Let’s talk about the housing bubble bursting? read the housing news, all are in the red.
    Gotta think wisely about spending folks, those memberships and subscriptions, those $7 coffees. Everyone wants your money and you are willing to give them- spending spree, subscribing etc, but I bet you that no one will be willing to help you when you will be going through tough financial times. Good luck! Tough times are coming!

  • Paul Ward 1 month ago

    Govt has a long history of changing formulas for statistics to try to make problems go away. Not only CPI, but unemployment is another one. Substitute CPI with CP lies. Thanks to the author for bringing this to everyone’s attention.

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