May Market Review

Another month has passed, and the real estate market continues to be a bit confusing. 

Comparing this month to the last or even to the same time a year ago, it appears that the market is rebounding.  The number of sales has increased.  New listings have increased from April as well as the active listings. 

The average sale price is no longer declining.  Comparing May and April of this year, the sale price is up by about 3%.  Looking at May of 2022 compared to this May, it was only a little over a 1% decline year over year.  This is a strong positive for the GTA real estate market.

On the minus side, comparing the listings from last year to this, new listings are down 18.7%, and active listings are 23.1% down.  Properties are still taking longer to turn over than last year at this time.  The number of days a house is staying on the market remains relatively high.

Navigating a Shifting Market

Although there are some signs of stabilization, there are still indicators of a market in flux.  The next few months should tell us where we are headed for the balance of the year.  At that point, we should see what the Bank of Canada rate hikes have as an impact on the average Canadian household.  The recent increase in the benchmark rate seems to have been a surprise to a good portion of the Toronto area.

It is obvious that buyers are still looking for bargains, and sellers are still erecting for sale signs.  Despite the higher interest rates, renters are seeing the value in home ownership.  Homeowners are feeling the pinch and struggle to make the monthly mortgage payments.  This creates an interesting real estate dynamic in the GTA. 

The statistics show that the average selling price was almost $1.2 million in April of this year.  This can be discouraging to many potential buyers, with affordability a key factor combined with a supply shortage.  This can pose an interesting problem for the City and surrounding areas.  It could easily lead to investors and businesses, as well as workers, seeking other areas that are more affordable and with greater access to properties.  The demand is there and the issue could be a reasonable supply.

Despite the ongoing fluctuation in the real estate market, companies like continue to receive inquiries and applications for refinancing mortgages and applications for first-time home buyers together with investors.  With their wide selection of financing options is able to connect buyers with the best options for their needs.  Continuing confidence in the overall process can only benefit individuals, businesses, sellers and buyers, Toronto and Canada as a whole.

This site is an excellent starting point if you have questions or are interested in buying property.  They have the experience and resources to provide the best service.  See how they can help you.