🏡 housing market continued its adjustment to higher borrowing costs

Dated: May 6 2022

Views: 12

The Greater Toronto Area (GTA) housing market continued its adjustment to higher borrowing costs, with the number of transactions down on a monthly and annual basis. As has been the case with previous rate tightening cycles, some home buyers have moved to the sidelines to determine how they will reposition themselves in the marketplace given the higher rate environment and related impact on affordability.

 

GTA REALTORS® reported 8,008 homes sold through TRREB’s MLS® System in April 2022 – a 41.2 per cent decrease compared to April 2021 and a 27 per cent decrease compared to March 2022. On a year-over-year basis, the decline in sales was greater in the ‘905’ area code regions surrounding Toronto, particularly for detached houses. The MLS® Home Price Index Composite Benchmark was up by 30.6 per cent year-over-year in April 2022. The benchmark level in April was down in comparison to the March level. The average selling price, at $1,254,436, was up by 15 per cent compared to April 2021, but down compared to the average selling price of $1,300,082 in March 2022.

 

“Despite slower sales, 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,” said TRREB Chief Market Analyst Jason Mercer.

 

Link to the Full Article

Blog author image

Robert Piperni

Robert started in Real Estate over 20 years ago as a Real Estate Investor, building a portfolio of real estate. His passion for real estate and his experience as a licensed mortgage agent has helped h....

Latest Blog Posts

💵 Why housing costs are driving up inflation, despite the real-estate downturn 🔻

Canada’s housing market is plunging as higher interest rates scare off potential buyers. Even so, the effects of the slowdown are not showing up in the country’s red-hot inflation.

Read More

🏘 Homeowners who stretched themselves financially to get into market now pose key risk to financial system

High household debt and elevated housing prices have become bigger vulnerabilities in the past year, but the economy can still handle the rising interest rates needed to tame inflation, Bank of

Read More

⭐️ Market Watch May 2022 ⭐️

⭐️ Market Watch May 2022 ⭐️Greater Toronto Area (GTA) housing market conditions continued to evolve in response to higher borrowing costs. Similar to April results, May 2022 sales were down

Read More

🤝 What options do sellers have now that the housing market is cooling down? 🆒

Canada’s housing market appears to be cooling down, according to the latest statistics shared by the Canadian Real Estate Association. Home sales across the country dropped 12.6 per cent in

Read More