April 2022 Toronto Market Update
Written by: Remington Joseph
If you’ve been keeping an eye out, you’ve likely seen headlines talking about an incoming shift in the real estate market. To keep you informed as investors, homeowners, and first time buyers, we’ve gathered the stats recorded throughout April, to present them here for you.
The volume of sales across the GTA are down currently by 40%. Our experts had previously taken note of the beginnings of a cooling off period, and throughout April, we’ve really started to see this in effect. As interest rates rise, we’re seeing more homebuyers taking a break from purchasing. We believe that as these rates continue to rise, the overall appreciation of real estate will cool as well. Over the last year, we’ve watched as the average price of homes continued to rise, reaching a height of $1.3 million. Over the last month however, these prices have fallen to an average of $1.2 million. The pace at which homes were appreciating across the GTA weren’t sustainable, so we should all be grateful to see inventory levels of homes for sale slowly increasing as the appreciation of all home types fall. For investors and first time buyers, this is very good news!
The sales slowdown has impacted condominiums as well, going down almost 35% as borrowing costs rise. Similarly to residential properties, the average prices went up almost 13% over the last year. Again, as inventory levels rise, the pace of residential property appreciation will begin to slow down. For this reason, there’s a justifiably strong demand for new construction condominium units, as there has been for some time. During the past two quarters, total sales exceeded the total number of units launched for presale, resulting in a six-month plunge of 34% of standing inventory. This makes new construction a great way to enter the real estate market right now.
As always, we want to remind everyone that the real estate market is always shifting and evolving. If it’s safe for you to do so, we encourage getting into the market whenever possible so that when these shifts do occur, you’re in a position to take action. If you have any questions, or you’d like to hear more of our thoughts on the current state of real estate, be sure to join us for Brunch With REC, where we’ll be doing a deep dive into April’s stats, and where we feel the market is heading next.