May 9, 2022 | Market Update
In April, the Greater Toronto Area (GTA) housing market saw more buyers adjust to the Central Bank’s rate hikes. TRREB’s MLS System reported a total of 8,008 homes sold in April 2022, representing a 41.2 percent decrease year over year, and a 27 percent decrease compared to March 2022. With borrowing costs expecting to increase over the next year, some buyers are re-evaluating their positions in the marketplace given that affordability could be impacted.
TRREB President Kevin Crigger noted that “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.”
The decline in number of sales was once again coupled with an increase in average prices year over year. The MLS Home Price Index Composite Benchmark was up by 30.6 percent compared to April 2021. The average home price in April 2021 was $1,090,414 compared to $1,254,436 in April 2022, representing a 15% increase. However, compared to the average selling price of $1,300,082 in March 2022, we see a 16% decrease.
Sales have predictably slowed in April given the tightening of rates, however market conditions remained competitive enough to support a higher growth in prices. TRREB forecasts that prices will continue to grow in the upcoming months, but with fewer buyers and increased choice in the marketplace, the pace of growth will begin to moderate.
There is no doubt that transacting in Real Estate has certainly transformed – Throughout this pandemic we have had the pleasure of servicing a number of our clients, resulting in successful and most of all SAFE transactions throughout. Severe precautions are in place, and while we keep those in the forefront, we are still here to offer our guidance and expertise to help you make the next real estate move that is right for you and find ways to take advantage of the current Toronto Real Estate Market. Contact us today for a no-obligation discussion on how we can help you throughout your real estate journey.