March 2022 GTA Real Estate Market Update

With more and more new listings coming on the market, we continued to experience a bit of a softer seller's market in March 2022.  During the first two months of 2022, we experienced very low new listing inventory but demand for real estate remained very strong resulting in most listings selling in record time and for record prices.  As we got into March we started to see an increased inventory of new listings giving buyers a little more choice and it appears that the sense of urgency has tapered off a bit compared to the period between December 2021 to  February 2022.
 
We continue to remain in a seller’s market but the sense of buyer urgency seems to have calmed for some properties.  Renovated and top-notch properties are continuing to sell in bidding wars and for top dollar.  
 
Greater Toronto Area (GTA) March Market Update
 
In March we had 10,995 sales take place across the Greater Toronto Area.  Although sales were down 29.9% compared to March 2021, March 2022 was still the 3rd best March on record for sales and the second-best first quarter on record.  Listings in March were 11.9% below the listing activity in March 2021 and as a result, the market remained relatively tight and we experienced an average price appreciation of 18.5% in comparison to March 2021 and In February 2022 the average price across the GTA of a home was $1,299,894 with active listings actually experiencing a 4.1% drop compared to March 2021.  All indicators that we are still in a seller's market although a softer seller's market.
 

 
 
The Toronto real estate market has definitely bounced back with people returning back to the city as we came out of COVID lockdown.  What is most noticeable is that the Toronto condo market is back in full swing and many condos are now selling in bidding wars once again which was the case before COVID arrived.
 
Housing supply remains tight and government needs to place measures in place to support expediting the construction of new housing stock.  The interest rate hikes and foreign taxes will not solve the current shortage of housing supply.  It is projected that we will have over 1.2 new immigrants coming to Canada over the next 3 years which will continue to place pressure on the demands for housing. 
 
What to Expect For the Balance of 2022
 
The current softening of the real estate market is most likely a result of buyers placing a bit of a slow down or pause on their decision to move forward quickly with a purchase of a home most likely hoping that the housing market will crash.  However, the economic indicators do not support the rationale that the housing market will crash.  Trying to time your purchase when the market may crash can be dangerous and over the years I have seen many buyers get priced out of the market because of this buying strategy.   The best time to buy real estate is when you are financially ready – “don’t wait to buy real estate, buy real estate and wait”
 
Many newer or renovated properties are continuing to sell in bidding wars and those that do not sell during the bidding war period end up selling shortly after for what they would have sold during offer presentation day.  However, as always, homes that do not show well will continue to sit and take much longer to sell. 
 
In this market hiring an agent that understands the market and can aggressively market your property and set it up to appeal to a broader buyer audience will ultimately result in your property selling quickly and for top dollar.
 
2022 will continue to be a great time to sell. Are you curious about what your home or property may be worth in our current hot real estate market?  You may be pleasantly surprised!   Reach out and it would be my pleasure to answer any of your questions or prepare a market analysis to provide you with a sense of what your home may be worth in our current market.