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.
Housing prices in April 2022 compared to the previous month of March 2022 had decreased in price by an average of -3.5% with the largest price drop seen in townhouses 📉
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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