April 2022 Review
April 2022 saw a cooling market as interest rates continue to climb, reducing buyers’ purchasing power. Toronto Regional Real Estate Board (TRREB) reports the number of transactions in April 2022 were down on a month-over-month basis from April 2021. When comparing April 2022 to April 2021, we saw the following trend:
|Categories||April 2022||April 2021||Percentage Change|
|Number of Transactions||8,008||13,613||–41.2%|
|Number of New Listings||18,413||20,841||–11.7%|
|Number of Active Listings||13,098||11,668||-12.3%|
Looking into the different geographic pockets of Toronto and the Greater Toronto Area (GTA) we notice the following changes in transactions when comparing April 2022 to April 2021. The breakdown per area and product type follows:
Increasing Sale Prices
The average sale price for all property types was up by 15% year-over-year to $1,254,436 from April 2021 to April 2022, but down compared to March 2022’s $1,299,894. On TRREB, when comparing April 2021 to April 2022, the average sale prices increased as follows:
What trends are we seeing?
We are continuing to see the affects of increased interest rates and reduced buying power. Homes are staying on the market longer, which could also be a function of the sellers’ heightened expectations from the peak of the market earlier this year. Despite slower sales, market conditions have remained tight to support higher selling prices compared to last year.
What lies ahead for 2022?
The slow down in number of transactions and new listings can be a result of several factors. The combined uncertainty of rising interest rates, the Ontario provincial election, the ongoing war in Ukraine and soaring inflation has put buyers in a bit of a standstill. From our experience with following up on showings that occur at our listings, a common sentiment voiced by realtors is that their clients want to wait and see what happens in the Toronto real estate market. Despite having a lower number of transactions in April 2022 when compared to April 2021, we continue to see rising home prices year over year. A recent article published by Global News shared that according to Royal LePage’s latest housing survey, the brokerage expects the aggregate price of a home to rise by 16.5% by the end of 2022. To put things into perspective, housing activity is still above pre-pandemic norms. This could mean, that despite certain factors, prospective buyers continue to work within a high price and high interest rate environment. It’ll be interesting to see if the small dip in average sale price from March 2022 to April 2022 was a hiccup in a continuing uptrend of price escalation, or if it’s the beginning of a changing market.
Footnote: Source of statistical data is from the April 2022 Market Watch report of the Toronto Region Real Estate Board (TRREB) MLS.
A – Monthly Percentage Change in the Number of Units Sold
B – Month Over Month Average Price Percentage Change
C – Seasonally Adjusted Month Over Month Average Price Percentage Change
D – Monthly Percentage Change in Average Sale Price