Similar to April, sales of homes in the Greater Toronto Area in May were down on a monthly and annual basis.

The Toronto Regional Real Estate Board attributes the drop of 38.8% in sales compared to a year ago; and 9% decline in May from the month before to higher borrowing costs, but the board says buyers had more negotiating power.

”After a strong start to the year, the current rate tightening cycle has change market dynamics, with many potential home buyers putting their purchase on hold,” says board Chief Market Analyst Jason Mercer.

”This has led to more balance in the market, providing buyers with more negotiating power.”

The average home price hit $1,212,806 in May; up 9.4% from the same time in 2021.

But it was still lower than the average of $1,253,567 in April of this year.