The March 2022 Toronto real estate numbers continue to be a very hot topic of discussion. When the numbers come out every month, I take a deep dive into what they mean – to understand what’s really happening in the Toronto market.
It’s important to have a solid understanding of these numbers. This will prove useful to you if you’re in the process of buying or selling, investing, renting, or a current homeowner.
I guarantee you at the end of this guide, you will have a solid understanding of what is the meaning of Toronto’s March 2022 real estate numbers and what you should do to help better position yourself in the marketplace.
Now let’s take a look into March!
The detached homes market in Toronto is on the move! After seeing crazy January and February numbers, it is obvious that many sellers who were thinking about selling jumped and listed their homes for sale.
The number of listings on the market grew by 40% in March over February, and the number of sold transactions month-over-month increased by nearly 50%. So needless to say, there is a lot of trading happening.
The year-over-year prices of detached homes are up 2.4%, but the number of sold transactions year over year is down 24%. What this means is a full year of price increases, but demand is starting to slow.
If you’re looking to purchase or sell in the lower-priced segment of the detached homes market, you’re in luck as these are moving the fastest and at market value pricing.
As we enter the warmer spring months, a flood of new listings are expected as is typical for this time of year. But I have a feeling this spring season will be slightly different than those crazy spring markets of the past couple of years. We’ve already hit peak frenzy earlier this year so I expect the spring market to be somewhat “normal”.
My advice for buyers: there is going to be a lot of inventory coming onto the market in the coming weeks, so know what your needs are (neighbourhood, bedrooms, bathrooms, yard, parking etc.) so you can make a decision quickly. The inflow of inventory won’t last long, so buyers shouldn’t have that “wait and see what else comes out” attitude. Now is the time.
My advice for sellers: if you’re thinking about listing, list now. Get ahead of the market and all of the listings that are expected to come once the weather turns. You’ll want to be ahead of the competition by being on the market and making your home attractive to buyers looking right now.
Semi & Row Homes
I say this month after month, but the semi and row home market is and remains one of the most stable segments in Toronto real estate. But things are definitely heating up as expected for this time of year.
Month-over-month prices are up 2%, while the number of new listings is up 33.5%, and the number of sold transactions is up 32%. Year-to-date prices are up 5.4%.
Year-over-year pricing is up 15.78%, but the number of sold transactions for the same period in 2021 is down 25%. This shows a full year of price growth, but demand is starting to slow as in the detached market – a very similar pattern.
With the news of the new mortgage rates, the semi and row home market will see the greatest impact as buyers will be looking for slightly more affordable homes. I’m not saying this segment will slow, but the trading homes will be at slightly lower price points.
Buyers within this segment and price range are usually the most price-sensitive, so buyers may have lower budgets than earlier this year. This is good news for the lower-priced semis that are well done and turnkey, as buyers will want to move quickly.
My advice for buyers: revisit your pre-approval if you’re currently looking to ensure your buying power hasn’t changed. I’d also recommend pulling the trigger if you find something you love because many will be looking in this segment as the spring heats up – competition will too.
My advice for sellers: if you’re listing, it’s more important now than ever before to stand out. Do those upgrades, add some fresh paint, think of small touches you can make to get buyers to fall in love. You’ll be happy when you have a quick sale and are able to move on to your next purchase quickly and easily.
The Toronto condo market never really slows down – it’s one of the most dependable areas in real estate that consistently shows growth, steady prices, and a high number of trades. This is proven once again when we look at the March 2022 Toronto real estate numbers.
In March, the month-over-month prices haven’t changed much, but the number of listings increased by 25% and the number of sold transactions is up by 55%. Year-to-date prices are up by 9.2%, and year over year, prices are up 14.57%.
A huge contribution to the increase in transactions was due largely to the mortgage rate hike which has been rumoured for quite some time. Many buyers wanted to confirm a purchase in order to lock in a lower mortgage rate.
In addition, many corporations and businesses are starting to return to the office, meaning that working from home isn’t a permanent reality. Many are returning to the city and buying new condos to live in.
I expect the condo market pricing to stay on a steady track of increases – something that is stable and reliable, inventory levels to continue to rise as more sellers make the climb up the property ladder, and buyers to take longer to pull the trigger as they wait to see what else comes on the market.
My advice for buyers: Don’t get caught up in a bidding war and pay more than you can afford. Work out a strategy with your broker so you have a plan when it comes to buying. Don’t be rushed because there are a lot of great condos available. I’d also recommend reconfirming your spending power so you have the latest numbers from your mortgage broker.
If you’re a first-time buyer looking to get into the condo market, don’t think that prices are going down. It’s not going to happen. Get into the market now – there are lots of options out there for you to consider.
My advice for sellers: Staging goes a long way when it comes to selling your condo. A professional stager and your broker can showcase your home in a way that appeals to what buyers are looking for. It might not be how you live now, but staging can get you more money and a faster sale. Do some upgrades, add a neutral paint colour, and optimize your condo to appeal to the huge number of buyers that are out there now.
Hope this guide was helpful, and please do not hesitate to contact me at 647.930.1888 or email@example.com to discuss the purchase or sale of your home, investment advice or if you would just like more information.