Heads up everyone! This month’s update is one you don’t want to miss!
In the wake of ongoing interest rate hikes, the GTA real estate market showed clear signs of cooling in April. Sales dropped by 27% since last month and 41.2% since April 2021. Prices remained 15% higher than last April, however, we saw a 3.5% drop in the average home price between March and April.
Interest rates are forecast to continue to rise and buyers are laying low, choosing to step aside and reassess their strategy as they evaluate how the market responds.
The latest consumer interest rate forecast by Desjardins predicts this rate hike to be temporary, intended to cool off inflation. Rates are expected to come back down by the end of 2023. In the meantime, however, the current market conditions offer much needed relief to buyers who have been shopping for a home. Although competition remains high and should continue to support price growth, some overheated communities are seeing a much needed correction as buyers wait it out on the sidelines.
As always, the news carries more weight than the actual change in affordability, and right now is a great time for buyers to step in and secure something at a discount!
Until recently, it was a good idea for homeowners to buy a new home before selling their existing one, as high competition made the buying process much less predictable than the selling process. Now, those caught in the shift must sell or they risk not having the money to close on the home they have bought. This is where we come in and make them an offer they can’t refuse!
HERE'S WHAT HAPPENED LAST MONTH IN THE GTA:
• Greater Toronto Area REALTORS reported 8,008 home sales in the GTA; a decrease of 41.2% compared to April 2021.
• There were 18,413 new listings in the GTA; a decrease of 11.7% compared to April 2021.
• The average selling price for all home types reportedly increased by 15% compared to April 2021.
• The average condominium apartment price increased by 14.1% compared to April 2021.
“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,” ~ TRREB Chief Market Analyst Jason Mercer.
STAY TUNED FOR NEXT MONTH'S REPORT, WHERE WE'LL SEE THE IMPACT OF FORECASTED INTEREST RATE HIKES AND CONTINUED BUYER APPREHENSION.Is now the time to buy? It might depend on what your desired areas and budget are. Is now the time to sell? YES.
Think you’re ready to start looking? Download our Home Buyer’s Guide here, and check out our home search function here!
What should you do if you’re thinking about selling? Check out our Home Selling Guide here and give Zubin, Mansoor or Karl a call. Market conditions are changing quickly, but we have you covered. Let us make a plan that works for you based on price, location and timelines. We know our market and we’re here to help.
Read the full TREBB report here.
Reach Out Today! We have you covered.
Email us at firstname.lastname@example.org
Zubin Abuwalla | Direct: 416-389-8019
Mansoor Ahmed | Direct: 647-297-1721
Karl Abuwalla | Direct: 647-883-0874Enter Blog Post Here