April 2022 Market Stats

February 9, 2022

April 2o22 was the start of a slowdown of the crazed frenzy we experienced in early 2022 in the GTA market.   The total number of sales year over year was down 41.2%, a significant drop from the recording setting sales of 2021, however, the average price climbed to $1,252,436 which represents a 15% increase.   New Listings were down while days on market remained the same.

So why is this happening?  The No. 1 reason is an increase of interest rates, the releasing of Covid restrictions which means many are heading back to their offices, an increased tax on foreign investors and a lot of noise in the media of impending doom and gloom.   You could almost say the Jan-March activity was an early spring market as a flood of buyers came in during the winter months with much enthusiasm to secure a property.

The softening of the market is inconsistent though across the GTA with outer lying areas in the 905/519/705 seeing the biggest drop.  Oftentimes these are the areas that saw an unprecedented price gain during Covid and prices are now correcting accordingly.

The core of the city, most of the ‘416’ has seen a flattening of prices, fewer number of offers on offer night but still its an active market to Sellers benefit.  We are not in a buyers market yet and quite frankly I don’t know if we will be any time soon.  What I can say though is Sellers everywhere will need to adjust their expectations going forward and a careful market analysis should be done prior to setting a list price.   The ‘list low and sell high’ strategy may no longer work so extra time and consideration should be taken prior to any Seller embarking on a sale.   Sellers make sure you have an experienced Realtor working for you in this market.   Negotiation skills, a proper Comparative Market Analysis (CMA) and someone who can help manage the sale during these turbulent times.

For a more detailed analysis on whats happening in your neighbourhood please message me and I’ll take you through the numbers and provide in depth insight and analysis so you can make an informed decision, whether you’re buying or selling, or both.

 

Terri