Toronto Real Estate Market Watch Report May 2022: GTA Real Estate Market is now Officially Buyer’s Market

People are freaking out about the gloom and doom of the Toronto Real Estate Market crash. The increase in interest rate, the frequent uptick of interest rate, to which regions and areas have dropped the most in price. So let’s take a closer look at five parameters that measure market crashing to see what’s really going on. Let’s see the analysis from Toronto realtor Priscilla Han and answer some pertinent questions from the general public.

Average Sold Price

Comparing May 2022 to April 2022 Real Estate Market Watch for city of Toronto, the average sold price for May is $1.21 million, a 3.3% drop from April 2022, and a 3.6 % drop from March 2022, compared to 2021 same time, a 9.4% increase.

Market Activeness

7282 listings got sold in May 2022, a 40% drop from May 2021. 8000 listings were sold in April 2022. So, a slight drop in the market. 

Market Supply

There were 18,700 new listings that came onto the market, similar numbers from 2021 and April 2022. This reflects that sellers are not panic selling and there are steady stream of new listings coming onto the market. 

Active Listings

The active listings in May 2022 is 15,435, a 26% increase. This means that buyers could pick and choose on their own timing. Previously, the market was a seller’s market where buyers often ended up in bidding wars. Since March, and April of 2022, it was rebalancing and by May it definitely moved to a buyer’s market. 

Average Days on Market

In May, 12 days was the average Days on Market (DOM) which is considered a short time in purchase duration, compared to 11 days the month before which is still pretty fast. Many hidden buyers are browsing the market and kicking tires. You could tell this by the fact market listing stays on for an average of 2.1 month versus beginning of 2022 which the average was 0.7 or 0.8 month that a listing stayed active before being sold. Another sign it’s a buyer’s market now. 

Let’s take a look at four different neighbourhoods in the GTA where Chinese immigrants love to live:

Richmond Hill

It peaked in January 2022 at a $1.62 million average sold price, it has since dropped 9% to an average of $1.49m. 

Markham

It peaked in February 2022 at a $1.55 million average sold price, it has since dropped 13% to an average of $1.47m.

Oshawa

Its average sold price hovers around just less than $800K, but peaked at $1.1 million and turned to the price prior to the Pandemic.

Mississauga

Its average sold price hovers around $900K but peaked at $1.2 million and didn’t drop that much . 

Looking at this graph, the general public might be concerning that Richmond Hill and Markham has lost all the real estate value increase of the year before when you Richmond Hill grew by 12% at average $1.33m, whereas Markham grew by 4% at average $1.32m per house. You may come to the conclusion that Richmond Hill has stronger growth potential than Markham, but if you look at a comparative graph from January 2021, you will see Markham has 28% growth whereas Richmond Hill only has 22% growth. 

Two Factors Impacting Real Estate Market

To respond to my YouTube fan’s question about the impact of new immigrants on the real estate market, here is a graph covering the total migration to Ontario from 1992 to 2022. Look at the steep increase of new immigrants since 2016, breaking records each year. 60-70% of those new immigrants will locate to the GTA in a rental or end up purchasing their home, so imagine the impact it will have on the GTA real estate market. 

Let’s also look at the impact of interest rates on housing prices. Here is a graph covering 20 years of interest rates and housing prices, and you’ll notice that from history, regardless of the interest rates, the average home prices has been increasing.  When interest rates go up, housing prices typically go up. However when interest rates decrease, housing prices remain the same. So no matter what the change in interest rate, housing prices will continue to go up. 

If you want to know the direction of the real estate market for the future, take a look at the graphs I have provided and conduct your own analysis and draw your own conclusions. 

Buying and Selling Toronto Real Estate

Whether you are buying your first condo, or selling a single-family home, Team Priscilla Han Realty can help you.

We are proud to serve the whole Greater Toronto Area (GTA), including but not limited to the CIty of Toronto, North York, Markham, Richmond Hill, Vaughan, Aurora, Scarborough, Mississauga, Oakville , Pickering, and Oshawa.

We help research properties that are best tailored for home buyers, providing them with instant notification of newly available properties, access to exclusive deals that are not on the MLS.  

For property sellers, we have a database of thousands of buyers-in-wait, 20,000+ combined subscribers on YouTube TouTiao. Our "Your Home Sold Guaranteed, or I'll Buy It" program provides seller with a worry-free selling process. Our professional staging, photography, and videography service help sellers present their property at their best and maximize exposure to potential buyers!

Reach out to us at prishanrealty@gmail.com, or call/text: 647-360-8963 for a free consultation or home evaluation. Visit our website, https://priscillahanrealty.com  for more up to date videos, blogs, and listings.