Buyers in the GTA continued to shy away from purchasing homes in July, as it followed the downward trend to became the fifth consecutive month to experience the market shift toward fewer sales. In fact, July’s sales were down considerably from June, 24.1% to be exact. However, this month-to-month drop shouldn’t come as a total surprise, as the last decade has routinely shown a decrease in sales from June to July, anywhere from 3% to 25.7%. It’s when compared to July of 2021 that the numbers tell more, as sales volume was down 47%.
Also following the movement for the last few months were new listings. They were down 4% over last year for the same period. Active listings, however, were up 57.6%, meaning that properties are staying on the market longer, averaging 29 days versus 20 days in July of 2021. While higher interest rates are cooling the market, resulting in a return to balance for housing prices, it’s also allowing buyers more time to find the houses that they’re looking for.
Toronto
For Toronto, the drop in home prices was 15.8% from the peak of February of 2022, a decrease of $191,320. Properties in West Toronto did not experience quite the downturn though, falling 11.7% from the same February 2022 peak.
Detached homes in the GTA featured the biggest price drop yet again, a fall of 26.9% since February, though it should be noted that July of 2021 also saw a decline. Semi-detached and townhouses were up from last July, but still down 14-15% from February.
Not only that, but listings are down in the Toronto market that has continually seen a lack of supply. Toronto residents that do own homes appear to be playing the long game, deciding to wait out higher interest rates and inflation before listing their home for sale.
If You’re a Buyer
It is still important to stay active on the market and look for the best home for you. While it’s more expensive to buy than it was in February because of higher interest rates, waiting it out may not work because interest rates are only expected to rise further in 2022. Despite falling prices, your purchasing power will likely be reduced over the next few months, making buying a property more costly than it is now.
If you are currently in the market and do need a new home, now is the best time to buy. Acting now also allows you to take advantage of reduced competition from buyers and those looking to sell now before interest rates rise again. Make sure you’ve spoken with your mortgage advisor so that you know your financial strength, and what your options and limitations are in this changing market.
Photo by Narciso Arellano on Unsplash
