July 2022
The residential real estate market continues to adjust as the Bank of Canada attempts to cool our economy by increasing the overnight lending rate
The average price of all home types across the GTA for the month of July increased by approximately 1% compared to July 2021.
This is very healthy as the very overheated appreciation we witnessed from November 2021 to February 2022 was not, we saw prices appreciate by approximately 30% during this short time.
In hopes to make fewer drastic adjustments in the future, the Bank of Canada raised the rate by 100 basis points or 1% early in July.
Although this change makes the cost of borrowing more expensive, prices on homes, gas, food, etc., were getting out of hand.
Home prices were appreciating at an unsustainable pace, with the cost of borrowing going up the pace at which homes appreciate has begun to cool.
The pace at which homes are selling is also slowing with the volume of sales for 2022 being down 34% compared to the same period last year. Supply levels of available homes for sale are up over 55% allowing buyers more choice.
A key indicator we watch is months of inventory(MOI).
The current months of inventory is now over 3 months, this means that if another home did not come to market we would be sold out of homes, of all types, in just over 3 months.
During the first quarter of the year this number was in WEEKS! We had less than a month's worth of available homes for sale.
This was an unhealthy pace which assisted in driving home values up too quickly.
If you are looking to learn more about the buying and investing opportunities, please do not hesitate to contact me.
Know that I am only a call, email or text away to assist with any of your real estate needs.