May 2022: The Toronto real estate market has seen a steady decline in transactions over the last year, but prices have stayed steady. What does this mean for you?
/If you're looking to buy, it means you should take advantage of the opportunity while it lasts. With fewer transactions happening, there's less competition—which means you can get exactly what you want at the price that works for you.
If you're planning on selling, it means now is the time to do so! This is a great time to sell because there are fewer people competing for your house, which means if you have an attractive listing and a good listing price, someone will likely snap it up quickly.
And if you're thinking about investing in real estate? It's never been a better time—especially if your focus is on buying up low-cost properties that can be rented out and resold later with minimal hassle or stress.
May was a great month for real estate, but there were some surprises in the numbers. Year over year transactions were down 38.8%, which is not surprising as this is a continuing trend leading to the high demand. What is surprising, or maybe not, depending on who you are, is that prices were up 9.4% from last May, which is less than the last few months when we were seeing 15% and 22% average price increases.
The market seems to be settling into a new normal: an 8-10% price increase compared to the last several years' average of 20%. This change is being driven by lower-price homes, which are seeing less demand than they used to while high-end luxury homes remain in high demand.
While the market might seem unpredictable, there are usually some good reasons for the fluctuations we see. With an in-depth analysis of previous trends and a discussion of current events, we can gain some insight into what's likely to happen in the future. These insights can help us make better decisions in our own lives—whether that means deciding to purchase a new home now or waiting until the market has slowed down even further, or deciding that now would be a great time to sell your home. The Toronto real estate market is complicated, but it doesn't need to be feared.
