2022/05/09 | Team Hani Al Olabi
WHAT'S HAPPENING IN THE MARKET?
The Greater Toronto Area (GTA) housing market showed signs of cooling as the Bank of Canada raises interest rates and signaled more hikes to be on the way. The higher borrowing costs and the related impact on affordability are evident with the number of transactions down on a monthly and annual basis.
Looking at April 2022, the average selling price in the GTA was $1,254,468. There was an overall increase of 15.0% when compared to April of last year. When compared to last month (MAR 2022), the average selling price has decreased by $45,518.
This decrease in price is observed across all home types. The property type that suffered the most was Freehold Townhouses, down $93,206 from last month. Townhouses were closely followed by Semi-Detached Homes, down 4.4% from March. It is worthy to note all property types experience higher prices than in December, except for Townhouses.
Looking at the average selling price in the GTA from 2016 to 2022, we had a similar market adjustment back in 2017, when prices started falling in May after the implementation of the foreign buyer's tax. This trend continued to fall until August then began to adjust itself in September.
Comparing total residential transactions from last year of April to this year, we experienced a 41.4% decrease in transactions.
Analyzing the total transactions by month, there was a 36.8% decrease in 2022 transactions from March to April, a trend that is ongoing when looking at 2021 and 2020.
Last month, we ended March with 10,167. Since then, the supply of homes has increased by 2,931 properties to 13,098. Considering the active listings in 2022, there was a 12.3% increase in inventory when compared to last year, officially closing the gap.
If you are thinking about buying, selling, investing, or just have some real estate questions, you can reach me directly at 647-298-7500 or by scheduling a meeting with me.
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