What to Expect When You’re Expecting an Upward Trend: January 2022 Toronto Real Estate Market Update

This is now the third month in a row that has seen an increase in the Median price of a home in Toronto. What does this mean for you? It means that the market for homes in Toronto is hot and getting hotter, but that you need to be careful. The inventory of homes for sale is still very low, so it is important that you act fast to make sure that you get the home you want and need.

The monthly stats just came out from TRREB, and once again, the average selling price "Year over Year" was way up - 28%.  Even the seasonally adjusted numbers were up 6.9%.  The weather and COVID kept many buyers at home with volume down 18.2% but it appears those who wanted to buy weren’t scared away from these factors.  Although I found that higher end homes were down in both volume and price, one factor could be because many people were away. 

The fear of interest rates rising ¼ or maybe ½% are making people think they should get in now. I personally think overall this won’t be a bad thing. It may slow down these double-digit sales numbers.(28% is NOT sustainable in any healthy way) and if consumers are worried about half a percent that might take their mortgage from sub 2% to just over 2% then I would suggest that they are stretching themselves too much.

Now that restaurants, bars, theatres are open (albeit 50% capacity) and the height of Omicron seems to be behind us, there are new listings coming out and there are some listings that were out in December coming back out because they didn’t sell.  This is what we see every year with sellers and their agents starting to look at spring and the March break and Easter holidays.

Stay warm and Stay healthy.