The Toronto Market Report for April gave homebuyers the impression of a market headed for a cool-down with reports of a dip in sales to the tune of 41% since last year. This cooling effect is most prominent in the 905 area, including municipalities like Brampton, Mississauga, and Markham. The drop in sales, according to the Toronto Real Estate Board, is a reflection of buyers taking a step back from the market amidst rising interest rates.
As reported by TRREB (Toronto Regional Real Estate Board), the Greater Toronto Area housing market is seeing ongoing adjustments in response to higher borrowing costs. This “rate tightening cycle” has buyers taking pause as they reevaluate their next moves in the market.
In speaking with CP24 last month, Royal LePage President and CEO Phil Soper acknowledged that the Canadian housing market continues to look positive, in spite of some buyer apprehension owing to higher interest rates, saying:
“In general things continue to look positive for housing in the country as more people move to Canada but people are being a little more cautious and certainly the rising interest rates have heightened people’s awareness that the economy is in an unusual place.”
Based on the Market Report Summary for April 2022, these are the 6 most significant takeaways for buyers and sellers:
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1. The average home selling prices in the Greater Toronto Area area increased 15% year-over-year to $1,254,400 while decreasing 3.5% month-over-month for April 2022
2. The Greater Toronto Area’s MLS Benchmark Price decreased to $1,354,000 in April from its peak of $1,376,000 in March 2022
3. Detached home prices increased by 17% year-over-year to $1.63M
4. Semi-detached home prices increased by 18% year-over-year to $1.26M
5. Townhouse prices increased by 18% year-over-year to $1.12M
6. Condo apartment prices increased by 14% year-over-year to $790k
Image Credit: The Times UK
Per TRREB’s latest Market Watch findings, TRREB President Kevin Crigger had this to say on the recent stats:
“Based on the trends observed in the April housing market, it certainly appears that the Bank of Canada is achieving its goal of slowing consumer spending as it fights high inflation. Negotiated mortgage rates rose sharply over the past four weeks, prompting some buyers to delay their purchase. Moving forward, it will be interesting to see the balance the Bank of Canada strikes between combatting inflation versus stunting economic growth and related government revenues as we continue to recover from and pay for pandemic-related programs.”
TRREB Chief Market Analyst Jason Mercer went on to comment that, in spite of sales slowing, “…market conditions remained tight enough to support higher selling prices compared to last year. However, in line with TRREB’s forecast, there is evidence of buyers responding to increased choice in the marketplace, with the average and benchmark prices dipping month-over-month. It is anticipated that there will be enough competition between buyers to support continued price growth relative to 2021, but the annual pace of growth will moderate in the coming months.”
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