“We are beginning to see significant reductions in some communities of more than 20 percent for single-family homes in the greater Toronto area (GTA),” said Michael Carney, director of business development at HouseSigma. HouseSigma is a website that monitors real estate values and market trends and said that the latest data on home price sales from February 1, 2022 to April 19, 2022 show that there are signs that real estate prices are falling. in progress. According to the latest data on GTA house prices, single-family homes sold in February sold at an average price of 12.1 percent less in April, falling from $ 1.65 million to $ 1.45 million. Semi-detached homes fell 13.5 percent over the same period from $ 1.33 million to $ 1.15 million and the biggest drop was in mansions sold for 22.6 percent less than a drop of $ 1.24 million. dollars to $ 960,000. The condominiums had the smallest decrease of 6.8%, falling from $ 740,000 to $ 690,000. HouseSigma has found that price wars, which have pushed up prices, are less common and more homes are being scrapped and withdrawn from the market. “What we are seeing is a correction from the months of February, but I would say the fundamentals for GTA are still very strong,” Carney said. Although no one is saying that it is the beginning of a big crash, price reductions are significant as more potential buyers take a wait-and-see approach to real estate. “Between February and March, we saw a modest drop in the average selling price for the GTA and that applies to all types of housing,” said Jason Mercer, chief market analyst at the Toronto Regional Real Estate Board (TRREB). TRREB will release its own house price data next week, but says that when the Bank of Canada raised interest rates last month and noted that more increases are possible later this year, it had a negative effect on house prices. housing. “If we look back at previous Bank of Canada interest rate tightening cycles, we found that once the Bank of Canada starts raising interest rates, it leads to lower sales as people re-enter the market,” Mercer said. TRREB said that house prices are still in double digits over the past year and that while there may be reductions from month to month, immigration, high employment and a lack of housing supply mean that GTA house prices are likely to remain strong in the long run. In terms of real estate, it has to do with the location, so some areas show smaller price reductions than others. As more people returned to the downtown office in Toronto, prices in the core of the city were more likely to retain their value.
