MARKET WATCH MARCH 2022
I like writing about the real estate market in Toronto. However, it always seems the same to me, the only difference is I get a little older and the prices get a little higher. Overall, the Toronto Real estate market has been steady and stable over the past 15 years. Come to think of it, the city has been under construction for the past 15 years with no end in sight. Growth and expansion have been the buzz words for the millennium. Starting with the condo boom in the early 2000’s to the current Metrolinx takeover, where does this leave us? We have created a World Class City complete with grid lock, high rents & real estate prices and a few good sports teams. Whether we like it or not, Toronto is on a trajectory for costly housing and high commercial rents, similar to Manhattan and San Francisco.
What makes Toronto attractive is the diversity, low Canadian dollar and our talented labour pool. Companies can set up shop here and have an excellent return on investment.Therefore, don’t expect a crash or prices to come down substantially, there are just too many people looking to get in the market. So where does that leave today’s buyer?
Once the weather warms up, today’s buyer, although faced with higher prices, will have a selection of inventory to choose from and may be able to submit a conditional offer on inspection or financing depending on the property and its location. Furthermore, I suspect we will see more of a transparent market this spring, with sellers pricing their homes at the actual price they want and at market value, not prices to induce bidding wars.
The Toronto Real S. Taitt market is organic and changes each quarter and ultimately increases approximately 5% to 7% per annum. A full time realtor is imperative. It is currently one of the leading sources in Canada to accumulate wealth and leverage oneself for passive income opportunities in the future. Your Realtor should be like your barber, and have your best interest in mind. If you’re on the fence about a move, talk to your barber, they would be less subjective.
MARKET UPDATE FEB 2022
February home sales were down compared to the all-time record in 2021, but represented the second-best result for the month of February in history. New listings dropped, but by a marginally lesser annual rate than sales, pointing to a modest move to a slightly more balanced market. Competition between buyers, however, remained tight enough to support double-digit price growth year-over-year.
Greater Toronto Area (GTA) REALTORS® reported 9,097 sales through the Toronto Regional Real Estate Board’s (TRREB) MLS® System in February 2022, representing a 16.8 per cent decrease in the number of sales compared to February 2021. The supply of listings for low-rise home types (detached, semi-detached and townhouses) was also down year-over-year, but not by as much as sales. In the condominium apartment segment, particularly in Toronto, new listings were up in comparison to February 2021.
“Demand for ownership housing remains strong throughout the GTA, and while we are marginally off the record pace seen last year, any buyer looking in this market is not likely to feel it with competition remaining the norm. Many households sped up their home purchase and entered into a transaction in 2021, which is one reason the number of sales were forecasted to be lower this year and a trending towards higher borrowing cost will have a moderating effect on home sales. Substantial immigration levels and a continued lack of supply, however, will have a countering effect to increasing mortgage costs,” said TRREB President Kevin Crigger.
The MLS® Home Price Index Composite Benchmark was up by 35.9 per cent year-over-year in February. The average selling price for all home types combined was up by 27.7 per cent to $1,334,544. The pace of price growth varied by home type and region, but there was relative parity between low-rise and condominium apartment growth rates. “We have seen a slight balancing in the market so far this year, with sales dipping more than new listings. However, because inventory remains exceptionally low, it will take some time for the pace of price growth to slow. Look for a more moderate pace of price growth in the second half of 2022 as higher borrowing costs result in some households putting their home purchase on hold temporarily as they resituate themselves in the market,” said TRREB Chief Market Analyst Jason Mercer.