Forecasters have been warning that interest rate increase may lead to a cooldown in the Toronto Housing Market. While the February report showed little impact, March shows things are beginning to move a bit more. Overall, sales across the GTA have decreased and while listings have fallen too, they have fallen at a lesser annual rate, helping buyers see a silver line on the horizon with more choices and lesser competition.
However, this hasn't impacted average price that continues to be around $1,300,000, with just a little dip. This points to what many realtors and I have been saying for so long - we need more homes! Though a moderate slowdown may be coming our way, demand is less likely to die down as immigration doors open again, what's required is more home supply within the GTA.
More policy options may be along the way, like the Non-resident Speculation Tax has been increased from 15% to 20%, but a long-term solution to a tightening market won't be possible without managing the supply side of the market.
“Competition between home buyers in the GTA remains very strong in most neighbourhoods and market segments. However, we did experience more balance in the first quarter of 2022 compared to last year. If this trend continues, it is possible that the pace of price growth could moderate as we move through the year." - TRREB Chief Market Analyst Jason Mercer
March Housing Market In Numbers:
Real Estate News
What Toronto Home Buyers Could Expect In The Next 5 Years | Narcity Toronto
Among the newly-announced measures in the budget is a ban on foreign buyers purchasing non-recreational, residential property in Canada for the next two years. Foreign students, workers and permanent residents would be exempt.
Canadians View Rent-to-Own Housing Programs As a Solution: Report | Toronto Star
“Many felt this reduced a key barrier to home ownership in terms of the need to save a considerable amount for a down payment while allowing the renter to build equity.”