Toronto Real Estate In April 2022: Prices Are Still High, But Where Are All The Buyers?
I mean, look, I think people are afraid of the interest rate hikes that just happened, there's gonna be another one coming on April 13th and it looks like they're going raise it by the quarter point.
Hey everyone,
it’s Kenneth Yim with your April 2022 real estate market update for Toronto.
If you notice, March’s numbers just came out, and we're hovering around $1.3 million for an average price. Overall, if you're wondering where the buyers are at, because you have your place in the market, and it's not selling, well, let me tell you exactly what's happening. The average price year over year is actually up by 18.5%. So from this time last year, it was actually a lot lower, and it shot up significantly.
However, it's starting to come down from the peak. And you notice that month on month prices have come down by 2.6%. I know you're not supposed to look at month to month because there's seasonality components into it. You know, a lot of people traditionally want to sell the places in spring. But it’s just kind of a nice trend to see because traditionally we should be going up, we should be the start of the spring market.
So detached houses are taking a big hit the 416 is down by 7.5% and 905 is down by 5%. Whereas the downtown condos in the core C01 or C08 districts are actually up by 6.6% month over month with an average price of $882,000. So if you can see this little graph here, you see the little squiggly lines just going up like this, right?
So there's ups and downs, maybe zoom out, they'll just look like this, but it's still trending upwards. However, if you zoom in a little bit, it's just kind of coming down from its peak a little bit.
Where's it going to go? I mean, look, I think people are afraid of the interest rate hikes that just happened, there's going to be another one coming on April 13. And it looks like they're going to raise it by a quarter point. And we're hearing even hearing rumours of point 5% to half a point, which you know, it's not actually that significant. The last rate hike or by quarter point only affected your mortgage by $12 for every $100,000 in mortgage that you have. And if you have a variable mortgage already, if you're already locked into one, generally, if your prices or your payments are fixed, your payments don't go up that just amortization gets stretched out a little bit. So it's not like people are going be underwater because all of a sudden they can't make their payments. So I don't think it's the end of the world. I just think that buyers on our on hold right now, I think they want to wait to see what happens in the April market update which bank account update that is the overnight rate probably will go up, which will probably bring up interest rates. And that probably will have even more of a wait and see effect for buyers.
So if you're out there buying, it's probably a good time to get to find a deal and go catch somebody that really needs to sell. And if you're selling maybe it's time to actually really take your time and make your place like a beautiful! Just take the time to do the prep work because at the end of day it's like a beauty pageant. There's only one winner, the one that's the most beautiful will stand out the most and probably will attract bidding wars. So yeah, if you have any questions and you have any one at getting your situation get a little more detail. Please feel free to give us a call. We're happy to talk to you and look forward to hearing from you soon. Talk soon!