We just came off of a historic 2021 in terms of the Toronto and GTA real estate market. Early 2022 the market was off to even a hotter start. However, as of recently, it seems as if the market has slightly changed. First let us take a look at the numbers. The below bar graph pertains to Average Sold Prices in the city of Toronto, broken down by property type and month.

 

 

As we can see, average prices have dipped into March 2022. Please do keep in mind that this analysis is not perfect, for at the time of the research, we are only 14 full days into March. Whereas January and February, numbers account of the full month of sold data. Nonetheless, although this is not perfect, it clearly indicates that prices have relaxed for both property types. Why is this the case? Well the following are some of the main contributing factors.

  1. Inventory – Inventory has substantially improved. The more options buyers have, the less bidding wars, the less the competition and lastly – lesser selling prices.
  2. Rates – Rates have gone up. Although the increase is very small, it makes an impact when it occurs simultaneously to an increase in inventory.
  3. Inflation! When gas prices reach record highs, in combination with general buyer fatigue, purchasers are less likely to commute and drive around the GTA to see properties.

It is very difficult to time the market, and oftentimes buyers should practice proper due diligence and pick the best available property which would suit their needs; however, if one wanted to pick the best time to buy – now seems to be an opportune time.

*This is a personal opinion and every individual should take advice from their own real estate advisor.