The market outlook for 2022 is calling for a new price record in Greater Toronto Area (GTA)
The market outlook for 2022 is likely to see the highest recorded prices for homes in the history of Canadian Real Estate. The average selling price in the Greater Toronto Area (GTA) will increase at least 12% according to the Toronto Regional Real Estate Board (www.TRREBhome.com). This is not great news for First Time Home Buyers however it is very good news for Sellers, who will be cashing in on their most valuable asset. Whether its detached homes, semi-detached homes, towns or stacked towns, condos or lofts.... the property market is hot!
Interest rates are still at historic lows and it does not seem as if the Bank of Canada is going to drop rates any time soon, as the country tries to regrow after 2 years of stagnation due to the COVID/OMicron Pandemic. Mortgages are readily available and the flood of Buyers again is good news for Sellers, but creating a highly competitive market with multiple bidding nights, and prices regularly selling for 20% higher than the asking amount.
Demand for housing is every increasing, and new construction developments just cannot keep up! The number of listings on the Toronto MLS (the largest platform for selling real estate by volume in Canada) is at an all time record low. Its the lowest inventory the Toronto area has seen in 20 years. The old economic principle of supply and demand is whats driving up prices and creating a bit of a frenzy in the marketplace right now.
Showings on condos for sale are booked solid back to back from 8AM in the morning to 8PM at night with new Buyers and their real estate agents pouring in every 30 minutes. We tried to book a showing with one of my clients and desperately need to see the property, because the offer night is being moved forward by five (5) days because a Buyer has presented a bully offer (the polite Canadian term is "Pre-emptive Offer" which is likely to be 30% over asking and the seller is so excited they cannot wait for all interested parties to come to the table!).... Imagine the price if they did....? Although the argument some real estate agents make is that waiting means those Buyers might take their money elsewhere!
Yes it looks like some hectic days ahead for real estate agents and Buyers and Sellers in Toronto! If you want to learn more about whats happening on the ground, please reach out to me via phone or email.
