Rising Interest Rates and Continued Supply Shortage
Thursday Apr 14th, 2022
How will rising interest rates & continued shortage of housing impact the remainder of 2022?
Is the market balancing out? Find out below what experts are saying...
The Toronto Regional Real Estate Board reported 10,955 home sales this March 2022, marking a 29.9% decrease year-over-year. While home sales were down year-to-year, the condominium apartment transactions dipped by a much lesser annual rate.
Despite home sales declining, the average home price increased by 34.8% year-over-year in March 2022 to $1,697,396. The average selling price has dipped slightly month-over-month indicating signs of the market balancing out.
"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," stated TRREB Chief Market Analyst Jason Mercer.
With the GTA population experiencing rapid growth, TRREB President Kevin Crigger urges governments to "focus on measures that are proven to increase housing supply" as new and active listings continue to decrease year-over-year.