The real estate market has been on steroids for the past almost a year, mostly due to supply and demand but also blind multiple-offering put fire on the fuel.
But with the recent unprecedented rate hike by the Bank of Canada to fight the rising inflation, mainly due to the COVID-19 pandemic, it is on course to adjust itself.
Let us look at the Toronto Region Real Estate Board (TRREB)’s latest sales report for April 2022 and see how it reflects the sentiments of the market.
The market saw a major decline in the number of real estate transactions as much as it reduced by over 41% compared to the same month a year earlier. Compared with the previous month, February 2022, the number of transactions was reduced by over 26%.
While the number of transactions saw a steep decline it is interesting to note that the average Selling price still maintained a 15% rise, compared with last year. While compared with last month, February 2022, the average Selling price showed a 6.4% decline. Beyond this report, the average Selling price reported by the Realtors is seeing a continuous decline in May 2022.
As a result of declining prices, Sellers are holding off the new listings resulting in an almost 12% decline in the new listings coming to market, compared with last year.
The sales-to-new-listing ratio also saw a visible decline of 22% compared to last year. It is interesting though the time to remain in the market for the listings remained unchanged from the last year.
It is very interesting though that the residential Condo sales declined by 15.6% while the Average Sales price rose by 22.4% compared to last year.
The listings remained almost unchanged Sales-to-new-listing ratio declined by 14%. It also saw a significant reduction in the number of days Condo listings remained in the market by almost 49%, from 23 days to 12 days, compared with last year.
The Condo Rental market saw over 23% reduction in the total number of apartments being leased while the listing was reduced by over 42% and most likely resulted in the One-bedroom apartment rent increase by 18%.
The Commercial sector saw a decline both in Leasing and Sales of commercial properties by 27.5% and 12.4$ respectively.
Interestingly, the average Industrial lease rate jumped by 18.4%, the Commercial/Retail lease rate saw a whopping 28.3% increase, while the Office lease rate reduced by 2.4%.
I will be writing soon on the latest trends in the market and where we are heading in the short and long term.
If you have any questions or would like to discuss your unique needs and goals, please don’t hesitate to contact me at 416-908-5600. I’m here to help you find the perfect, tailor-made solution.
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A. Q. Mufti
Your Trusted Realtor in Mississauga, Oakville, Milton and beyond.
