There Are Fewer People Buying Homes In Toronto & Here's What's Happening
It is a major investment after all. 🏡
A row of houses in Toronto.
Well, it looks like some people are holding off on owning their dream home in Toronto and the GTA because a recent housing market report revealed that fewer people are scooping houses off the market at the moment.
On Wednesday, May 4, the Toronto Regional Real Estate Board dropped their market watch report for this past April and showed that the GTA housing market saw fewer transactions on both a monthly and yearly basis.
"Based on the trends observed in the April housing market, it certainly appears that the Bank of Canada is achieving its goal of slowing consumer spending as it fights high inflation. Negotiated mortgage rates rose sharply over the past four weeks, prompting some buyers to delay their purchase," TRREB President Kevin Crigger said.
According to the report, just over 8,000 homes were sold last month, which is a 41.2% decrease compared to April 2021, and its also a 27% decreased compared to this past March. On a year-over-year basis, the "905 area code" got hit the hardest, especially with the number of detached houses sold.
Average house prices also dropped in the last month and went from $1,300,082 to $1,254,436 between March to April 2022, which is an over $45,500 price difference. But, compared to last year, house prices actually jumped by 30.6%.
"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 dropping month-over-month," TRREB Chief Market Analyst Jason Mercer said.
"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."
Here are the average house prices for all home types across the GTA last month:
- Halton Region, $1,383,948
- Peel Region, $1,242,343
- City of Toronto, $1,243,070
- York Region, $1,426,650
- Durham Region, $1,075,332
- Dufferin County, $938,711
- Simcoe County, $1,046,351