latest data<\/a> from the Toronto Regional Real Estate Board (TRREB) reports that the housing market has been adjusting to higher borrowing costs as the number of sales fell on a yearly and monthly basis in April. The real estate board noted that this trend has been the case during past rate tightening cycles, where homebuyers have \u201cmoved to the sidelines,\u201d to reposition themselves in the market.<\/p>\n\n\u201cBased on the trends observed in the April housing market, it certainly appears that the Bank of Canada is achieving its goal of slowing consumer spending as it fights high inflation. Negotiated mortgage rates rose sharply over the past four weeks, prompting some buyers to delay their purchase,\u201d said TRREB\u2019s president, Kevin Crigger, in the monthly market report.<\/p>\n
\u201cMoving forward, it will be interesting to see the balance the Bank of Canada strikes between combatting inflation versus stunting economic growth and related government revenues as we continue to recover from and pay for pandemic-related programs,\u201d he added.<\/p>\n
Here\u2019s what we know about Toronto\u2019s April housing market from TRREB.<\/p>\n
Toronto home sales drop yearly and monthly<\/h3>\n
Last month, 8,008 homes were bought and sold over the GTA\u2019s MLS systems, down 27 per cent from March and a 41.2 per cent decrease compared to April 2021 when 13,613 homes were sold.<\/p>\n
The majority of April\u2019s home sales took place in the 905 region, where 4,984 properties traded hands. By property type, detached homes accounted for the majority of transactions, with 2,732 homes sold in the 905 area (\u200b\u200b47.2 per cent less than last year) and 3,600 homes sold throughout the entire GTA (down 44.5 per cent from April 2021).<\/p>\n
When it comes to supply, 18,413 new listings came online during April, about 2,400 less properties compared to the same period last year when 20,841 homes were added to the market.<\/p>\n
John DiMichele, CEO of TRREB, stated in April\u2019s market report that policymakers should not assume that because home sales have toppled from their record peak, that we can forget about the market\u2019s lack of inventory.<\/p>\n
\u201cBuyers who have moved to the sidelines will not remain there forever, and the population of our region will continue to grow on the back of immigration. In the absence of new supply, we will build a significant amount of pent-up demand that will need to be satisfied in the not-too distant future,\u201d said DiMichele. \u201cThe ability to increase and diversify our housing supply needs to be a key area of debate in our upcoming provincial and municipal elections,\u201d<\/p>\n
Benchmark home price rises from 2021 levels to $1.25 million<\/h3>\n
Although sales fell in April, the price of a Toronto home was up compared to April 2021.<\/p>\n
The average selling price of a GTA home increased 15 per cent year-over-year to $1,254,436 last month, up from $1,090,414 in April 2021. However, the average price dropped compared to March, when homes cost around $1,300,082.<\/p>\n
Townhomes in the 905 region reported the most price growth, rising 20 per cent from April 2021 to an average of $997,416. Detached homes in the 416 area continue to cost the most compared to other GTA property types, with an average price of $1,947,975, up 14.9 per cent annually.<\/p>\n
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<\/a>Photo:\u00a0Spiroview Inc.<\/a>\/ Adobe Stock<\/em><\/p>\n