Toronto’s west lakeshore and midtown neighborhoods saw drastic home price losses in May.
West Toronto Lakeshore, which includes Roncesvalle-High Park-Swansea area, saw a significant decrease of 21.36 per cent in the average home price from $ 1.7 million in April to more than $ 1.3 million in May.
West Midtown – from St. Clair Avenue West to Eglinton Avenue West, and Dufferin Street to Yonge Street – saw an even bigger drop by 31.15 per cent for the average home price from $ 2.6 million in April to just over $ 1.77 million in May.
The main factor for the decrease in these neighborhoods is that homebuyers are more reliant on institutional money, said Danielle Demerino, a Toronto-based real estate agent.
“They’re more affordable neighborhoods than Rosedale or Forest Hill. You get the same kind of cache without spending $ 4 million on a home, ”she said. “But as mortgage rates rise, the cost goes up, it’s less affordable and prices fall to accommodate it.”
Prices in the area also rose by almost 20 per cent from the fall of 2021 to February 2022. The home prices were not sustainable and quickly came down from the peak, she added.
In May, Toronto area home sales plunged 38.8 per cent annually as rising interest rates pushed down the average sale price of all houses and condos to $ 1.21 million, a $ 121,000-drop from the February market peak of $ 1.33 million, according to a recent TRREB report .
Although home prices rose 9.4 per cent on an annual basis, May was the third consecutive month-over-month price drop, down about three per cent from April, the report added.
With files from Tess Kalinowski
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