TRREB’s sales report for April 2022 showed a market starting to cool after almost a year on steroids. Supply and demand drove most of that run, but blind multiple offers also added fuel to the fire. With the Bank of Canada’s recent, unprecedented rate hike to fight rising inflation, the market is on course to adjust itself.
This post was first published in May 2022. The figures below are from TRREB’s April 2022 report.
Home sales fell sharply in April 2022
Let us look at the Toronto Region Real Estate Board (TRREB)’s latest sales report and see how it reflects the mood of the market. Much of the rising inflation behind the rate hike traces back to the COVID-19 pandemic.
The market saw a major decline in the number of real estate transactions. Sales fell by over 41% compared with the same month a year earlier. Compared with the previous month, the number of transactions dropped by over 26%.
For buyers who had lost bid after bid in 2021, this was a real change in tone. Fewer sales meant less competition, more time to decide and, in many cases, room to negotiate.
Prices, listings and days on market
While transactions fell steeply in April 2022, the average selling price still held a 15% rise compared with last year. However, compared with the previous month, the average selling price showed a 6.4% decline. Beyond this report, real estate agents were seeing a continuous decline in the average selling price in May 2022.
As prices declined, sellers held off on new listings. As a result, new listings coming to market fell by almost 12% compared with last year.
The sales-to-new-listings ratio also saw a visible decline of 22% compared with last year. Interestingly, though, the time listings stayed on the market did not change from last year.
April 2022 condo sales and rentals
It is very interesting that in April 2022, residential condo sales declined by 15.6%, while the average sale price rose by 22.4% compared with last year.
Condo listings stayed almost unchanged, and the sales-to-new-listings ratio declined by 14%. Condo listings also sold much faster, spending almost 49% less time on the market. The average fell from 23 days to 12 days compared with last year.
In the rental market, the total number of condo apartments leased fell by over 23%. Meanwhile, rental listings dropped by over 42%, which most likely led to an 18% increase in one-bedroom apartment rent. For investors, that pointed to strong rental demand even as sales slowed.
Commercial and industrial trends
The commercial sector also saw a decline in both leasing and sales of commercial properties, by 27.5% and 12.4% respectively.
On the other hand, the average industrial lease rate jumped by 18.4%. The commercial and retail lease rate saw a whopping 28.3% increase, while the office lease rate fell by 2.4%. The April 2022 numbers showed that each part of the market was moving at its own pace.
What the shift meant for buyers and sellers
A market that adjusts after a long run is not a crisis. Instead, it brings the market closer to balance. Buyers could finally take time to compare homes and book inspections. Sellers, on the other hand, needed to price with care, since buyers had more choice than before.
Rates have moved a great deal since April 2022, so treat these figures as a record of that month. For the next step in the story, read my review of the May 2022 TRREB sales report and my post on the Bank of Canada’s June 2022 rate increase. You can find current market data on TRREB’s website and rate announcements on the Bank of Canada website.
Talk to a Mississauga real estate agent
Do you have questions or would you like to discuss your unique needs and goals? I am here to help you find a solution that fits. Please send me a note through my contact page or call me at 416 908 5600. A. Q. Mufti, Sales Representative, RE/MAX Real Estate Centre Inc., Brokerage. If you found this helpful, I would appreciate a Google Review.
Disclaimer: this article was published on 18 January 2025 and reflects the information available at that time. Interest rates, prices, and government programs change, so check the current position before acting on anything here. It is provided for information only and is not financial, mortgage, tax or legal advice. A. Q. Mufti is a registered Sales Representative with RE/MAX Real Estate Centre Inc., Brokerage, Ontario, Canada.
