The number of sales in Toronto has dropped in the last month. Some buyers are taking a step back to reevaluate their budgets. The increase in variable interest rates has caused some buyers to pause their search. Other buyers have an opportunity to negotiate (somewhat), or at the very least not be in competition on offer night (more common for houses.) There have been a couple of recent rate hikes by the Bank of Canada, and there will be more before year-end. This uncertainty is affecting buyers’ confidence. Note: fixed-rate mortgages are tied to the bond market, which is more stable despite higher rates.
Is the market crashing?
No! Not even close.
If it isn’t crashing, is it dipping?
In some cases, house prices are dipping in the city. Condos, however, have remained sturdy. Note that a dip is very modest. We do not see a “crash” coming—the media love “crash” talk. We spend a lot of time speaking with our clients about what that actually means. We do not expect a drop in pricing to a previous level in 2020 – there is no reason to expect this. None. Toronto is far too desirable of a marketplace. We have many clients who are eager to purchase.
So what is this market?
The best way to describe the market at the moment is more balanced. That being said, some neighbourhoods and some houses are doing exceptionally well. Buyers are pickier when things cool off. Homes have to check off more boxes or be priced more accurately.
Note that the number of sales and sale price are different!
The number of sales has dropped off. Sale prices have softened by a small margin. The best way to describe the market is more balanced. Enjoy it while it lasts.
Toronto Real Estate Market Report – April 2022
April 2022 was another month of few sales in Toronto’s central areas. There were a total of 1,449 sales transactions. Keep in mind that with so few trades, the values can be skewed with more lower-priced condos and houses versus higher-priced homes – our overall annual markers will provide a better sense of value increase, which you can reach out to us here to discuss.
Detached Home Values
There were 304 sales in central Toronto in April 2022. The average home sold for $2,594,293, up 14% since April 2021. The average home was on the market for a meagre 12 days.
Semi-Detached & Townhouse Values
There were 251 sales in central Toronto in April 2022. The average home sold for $1,664,109 up 12.6% since April 2021. The average home was on the market for half of the Toronto market average, 15 days.
➤ Check out our top reads for anyone thinking about living in Toronto:
Toronto Condo Values
There were 894 condo sales—the average central Toronto condo sold for $929,271, up 12.03% from April 2021. The average condo was on the market for an incredibly low 12 days.
If you are curious to learn more about Toronto real estate, contact us here and read through our blogs.
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