April 2022 GTA Real Estate Market Update
Tags: GTA REAL ESTATE MARKET UPDATE, TORONTO REAL ESTATE, VAUGHAN REAL ESTATE UPDATE, BEST VAUGHAN REALTOR, BEST TORONTO REALTOR
In April the Greater Toronto Area (GTA) continued to see an adjustment due to the higher interest rates of borrowing. Buyers appear to have slowed down their home search and moved to the sidelines to determine the impact on the market and also to assess the impact on affordability. We have noted a decrease in the number of showings and are receiving fewer if any offers on offer presentation dates. Fewer homes are now selling in bidding wars but pristine and completely updated homes with high-end finishes are still selling in bidding wars. Other homes are taking a little longer to sell.
Realtors are once again returning to listing most homes at or around market value and not listing homes with offer presentation dates. We are returning to a healthier real estate market – as the last 2 years, the market has been a little insane. It is currently a great market for buyers who want to take their time to find the perfect home and still be able to do their due diligence by placing offers with conditions (such as financing and inspection conditions).
Despite slower sales, the market remained tight enough that the average sale price is still higher than what it was last year at this time. In April 2022 the GTA average sale price was $1,254,436 and in April 2021 it was $1,090,992 so prices are still up 15% compared to last year. But down from February 2022 when the average sale price was $1,334,544 which is just over a -6% drop. The first 2 months of 2022 were just crazy with very low listing inventory and many buyers wanting to buy. Our current market is a much healthier market.
GTA April Market Update
In April new listings were down by 11.7% compared to April 2021 and although the average sale price is down from the record set in February 2022, the average sale price is still 15% higher than last year April 2021. Homes are now taking longer to sell as buyers slow down their search and hence the number of sales is down -41.2% compared to April 2021. Traditionally April and May are when we see the highest number of new listings but this year new listings decreased by -8.8% compared to March 2022 and a decrease by -11.7 compared to April 2021. Year over year the decline in sales was greater in the regions surrounding Toronto and particularly in detached homes.
As outlined in the regional average sale price below prices continue to remain higher than they were in April 2021 across all GTA regions.
What to Expect For the Balance of 2022
We are currently going through a market adjustment which in my opinion is not necessarily a bad thing as the previous crazy seller’s market was not sustainable. Homes that show well and are in pristine condition continue to sell in bidding wars and homes that are a little older are still selling when the right marketing price strategy is utilized but may just take a little longer to sell as we go through this adjustment period.
If you are a first-time buyer it is a good time to get more active in looking for that perfect home. Make sure that you are pre-approved and that your mortgage broker or financial institution has locked down the interest rate for 90 – 120 days and that you have a comfort level on what your budget is and what you can afford.
Buy and sell your home or recreational property with Sylvia Smith. She specializes in residential and recreational real estate within the Greater Toronto Area, Parry Sound, and Muskoka. Whether you are a first-time buyer, an investor or you are looking for a cottage property, Sylvia Smith provides a seamless experience and is committed to making your real estate dreams come true. Combining her passion for real estate, and a tenacity for protecting client interests and providing integrity and client service sets her apart. Reach out if you have any questions or are thinking of buying and selling.