If January is any indication, 2022 is going to break records for prices and home sales in the Greater Toronto Area (GTA). A recent poll conducted by the Toronto Regional Real Estate Board (TRREB) shows that detached homes are on top of the list for buyers.
As of January 2022, home sales went down by -0.7% compared to last month and -18.2% compared to last year (Jan'21), this is primarily due to the falling number of listings. Toronto's home inventory is facing a severe shortage with new construction not able to keep up with the rising demand. (Read our full story on inventory here.) January showed how crucial this is for the market as we saw the lowest number of listings in two decades!
The average selling price is seeing an upward trend too, increased by 6.9% since last month and over 28% since Jan'21! Despite rising prices, buyers seem keen to get into the market, with average days-on-market decreasing to just 13 days and the sales-to-listing percentage as high as 89%! (Simply, that means there's an increase in home sales over listings coming on the market.)
January is traditionally a slow month for the housing market, and these trends could continue to grow upwards as we approach spring/summer.
"Immigration into Canada and the GTA is expected to be at or near record levels in 2022. All of these people will require a place to live. On top of this, job creation in average to above-average income sectors is expected to remain strong, further buoying consumer confidence to make a large-ticket purchase of a home. Unfortunately, the supply of listings will remain constrained, sustaining strong competition between buyers and double-digit growth in selling prices,”- TRREB President Kevin Crigger.
Key Takeaways from TRREB and IPSOS Consumer Survey:
- Active listings at the end of January amounted to 4,140 – down by 44% to the lowest level in more than two decades.
- Detached homes are on the top of the list for buyers
- Multiple interest rate hikes by the Bank of Canada will be an important factor impacting housing markets in 2022.
- Listing intentions are down more so in the ‘905’ area codes
- Home buying intentions for 2022 are higher amongst immigrant households and so too is the intended purchase price.
- In the ‘416’ area code, first-time buyer activity could increase compared to last year, owing to an increase in Condo demand
Real Estate News Updates:
Toronto Considers New Tax For Homeowners To Help Curb Soaring House Prices
It is not immediately clear what form such a tax could take, however in his original motion Colle referenced a 50% land speculation tax that was “credited with slowing the extreme increase in property values in Toronto in the 1970s.”
Economists Predict A Hot Spring As Buyers Scramble To Get In Before Interest Rates Rise
After nearly two years of record-low interest rates, economists and mortgage experts are expecting a rate hike as soon as March.