Spring 2022 Toronto Real Estate Market Update 🏡 Toronto real estate agents with the best online reviews
Thursday May 05th, 2022
Our latest GTA (Greater Toronto Area) market report indicates that a number of government initiatives, including mortgage interest rate increases, have softened the market in terms of prices and sales volume.
Despite prices softening on a month-to-month comparison, all housing sectors saw significant double-digit percentage price increases when compared to last year April 2021 🏆 Townhouses in the 905 suburbs saw the largest annual price increase of +20.0% between April 2021 to April 2022, while Toronto condos saw the lowest annual price increase of +12.8%.
We are certainly in a shifting market that has moved away from the exceptionally hot seller's market. That being said, there are only 0.9 months of housing inventory on the market meaning on a scale of supply and demand for real estate, the GTA is still certainly in a seller's market. In the following months, it will be interesting to see the impacts of our recent government announcements on the real estate market, including a two-year ban on foreign buyers purchasing Canadian real estate, multiple interest rate hikes set for this year to help offset inflation, and a vacancy tax being implemented this year for the first time.
Tips for Selling
*do you remember the advice our team shared over two months ago encouraging homeowners who are planning to sell a property this first half-year, to consider marketing their property as soon as possible? That advice still holds true, especially with our prime minister's official announcement on April 7th, 2022 that there will be a two-year ban on foreign buyers purchasing real estate in Canada. Although the details are still not yet released (e.g. the implementation date, exemptions etc), we can expect to see a softening of the heated seller's market. Don't think this will have an impact? Check out the TRREB stats between April 2017 to August 2017 when the non-resident speculation tax was first introduced in April 2017, by clicking here. Back in April 2017, housing prices were seeing 25%-32% annual appreciation rates and by July 2017 (three months after the non-resident speculation tax was implemented), detached homes were down negative -1.2% in annual prices as a result of the government legislature. We will see a softening of the market for a period of time, as a result of our latest government announcements. If your goal is to achieve the highest price possible and obtain an ideal closing date, you will want to work with a real estate team offering a strategic and effective marketing plan to help you achieve this especially since the market has already shifted away from a heated seller's market.
Consider working with a team that provides an effective marketing strategy to maximize your property's exposure in order to achieve a higher sold price.
Tips for Buying
*there is more inventory on the market right now (+28.8% more inventory in April 2022 than in March 2022) and we are seeing a bit of relief for buyers navigating a heated seller's market. If you are on the market to purchase a home, the first step is to get preapproved if you plan to finance your real estate purchase. From there, working with a trusted real estate team to keep a close eye on market activity week-to-week will help you navigate this market and purchase the ideal property at the right time. There are a couple of factors to watch as a purchaser: first, interest rates are set to increase multiple times this year (not in favour of purchasers) emphasizing the importance of securing an interest rate with your lender and ideally securing a purchase before that lower rate expires. Second, the latest government policy with foreign buyers banned from purchasing Canadian real estate for two years in combination with a Toronto vacancy tax will likely soften real estate prices for a window of time, creating new opportunities for purchasers to get into the market. These are some key points to consider if you are contemplating a property purchase.
Consider working with a team that can guide you in this shifting market and a team that has access to off-market exclusive listings including VIP broker pre-construction pricing, to provide you with more options!
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