May 30, 2022
As the Bank of Canada has raised the interest rates in order to slow down the inflation, the GTA market has been cooling down. A lot of buyers have decided to step back and figure out their next steps. According to the latest report issued by TRREB, the number of sales decreased in the GTA in the past month and the switch from seller’s market to a buyer’s market is more notable. The number of sales in the GTA has dropped by 24% compared to March 2022 and even though the average selling price to listing price is 108%, meaning that most properties were sold over asking, the percentage has dropped by 5% since TRREB’s report in March of 2022.
“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,” said TRREB Chief Market Analyst Jason Mercer.*
April 2022 to March 2022 Comparison
Now, let’s have a closer look into our immediate areas – C12 (which includes the St. Andrew-Windfields neighbourhood) and C13 (which includes Banbury/Don Mills and Parkwoods/Donalda neighbourhoods). The number of sales in these areas have dropped even lower than the average – around 33.3% down in C12 (from 36 in March to 24 in April) and around 37.5% down in C13 (from 80 to 50). While C12 has surpassed the average price by $509,953 ($4,016,292 compared to $3,506,339 in March, 2022), C13’s average price has increased only by $68,058 ($1,363,692 compared to $1,295,634 in March, 2022). With those good news, the average listing days on market in C12 has dropped from 22 to 16 while C13 has suffered a 10-day increase – from 9 average days on the market to 19. The average selling price to listing price is slowly decreasing as well – by 1% in C12 (from 101% to 100%) and by around 7.2% in C13 (from 111% to 103%). While the average selling price to listing price is staying afloat at or over asking, we will be able to see a clearer picture on the results of the increasing interest rates in the following months.
April 2022 to April 2021 Comparison
If to compare a month of April 2022 to April in the record-breaking year of 2021, we can see a radical decrease in the number of sales and the dollar volume of the listings in C12 and C13 areas. The number of sales in C12 has dropped by around 41.5% in the past year (from 41 in April 2021 to 24 in April 2022). We can see the same trend in C13 as the number of sales has decreased by around 41.9% (from 86 in April 2021 to 50 in April 2022). It is worth mentioning that the dollar volume in C12 has dropped by 19,073,500 in the nearest year (from 115,464,500 to 96,391,000) and in C13 by $51,826,876 (from 120,011,500 to 68,184,624), which is a 43.2% decrease. The average selling price to listing price has slowly decreased in the span of the year – by 2% in C12 and by 3% in C13.
Type of sales in April 2022
While only one condo apartment was sold in C12, condos made the majority of C13’s sales this month. With 28 sold condos in the municipality, it made 56% of sales in the area with the average price of $762,767. The area C12 is pleasing us with 17 sales of detached homes with a luxury average price of $4,948,882 and C13 has reported 13 sales of detached houses with a solid average of $2,777,600.
Summary
Overall, we can witness the first signs of the reaction to the new interest rates and the raising inflation. The market is slowing down and the average days on market number goes up, definitely a very different market situation compared to the beginning of this year. It is very important to adjust to the new conditions of the market and for that one needs an expert advice from a knowledgeable realtor.
Call us today for a confidential and no obligation chat about the market conditions in your immediate neighbourhood.
Ecko Jay Realty Ltd.
– *All statistics was taken for analysis from TREBB Market Watch:
April 2022 – https://trreb.ca/files/market-stats/market-watch/mw2204.pdf
March 2022 – https://trreb.ca/files/market-stats/market-watch/mw2203.pdf
April 2021 – https://trreb.ca/files/market-stats/market-watch/mw2104.pdf