Dare we say the market is ‘shifting?!’ : March 2022 Market Update
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Dare we say the market is shifting?! 🤯
👉Based on March's market stats & what we are seeing today, we can say “yes!”, there is a small shift, & experts are predicting this may set the tone for the rest of the year.🤞🏻
🔹We just experienced the second-best first quarter on record
🔹But, is there a shift?
🔹The average selling price is $1.3M, which is $34,650 lower than February
🔹March saw a 30% drop in the number of sales year over year (11,000 reported)
🔹The condo market represented 30.9% of the total sales (and saw the least impact in sales drop)
🔹Inventory is still scarce: listings are selling 16.7% faster year over year, in an average of 8 days
Dare we say the market is shifting?! Based on last month’s market stats from the Toronto Real Estate Board and what we are seeing day-to-day right now, we can say “yes!”, there is a small shift happening, and experts are predicting this may set the tone for the rest of the year.
❗Now, let’s start by stating an important fact: when we are talking about a shift, this doesn’t mean anything drastic by way of the GTA being a strong Seller’s market. What it does mean is that Buyer’s have a small level of relief as price growth is moderating and the pace of new listings to sales is increasing. 📈
This shift comes after over a year of staggering 🔥 record-breaking numbers, so the March report does still show a very active, competitive market that we have grown accustomed to. The average selling price is at 1.3 million dollars and the price growth year over year is still in double digits. Listings are now selling 16.7% faster than last year, in about 8 days. Further, in terms of the number of sales happening, we just experienced the second-best first quarter on record. 🙌
Now, here’s where we see the change:
➡️There was a 30% decline in sales this March compared to this month last year
➡️Price growth has dipped from last month (while still up year over year)
➡️The condo market is getting stronger, with this segment seeing the smallest dip
The average selling price of all home types dropped by $34,650 from February’s report. And less sales means that we are trending (gently) towards a more balanced market. 🙌
In our present market, this is the first movement we have seen that indicates there is any level of a slow down in both price and sales. This means that competition is not AS tight as it was - last year was much worse - we have a few more new listings, and fewer active Buyers. 🙏 This gives some breathing room for prices and opportunities for Buyers. There’s been a slight shift; and it’s very possible that the price growth could be more moderate for the balance of the year. ⚖️
One thing is unchanging: supply is the 🌟 star 🌟 of this real estate show, and it’s scarce. We will continue to see a Seller’s market and competition, just not at the level we saw last year.
With mortgage rate changes predicted, and government policies putting a serious emphasis on the housing market affordability crisis, it can be hard to dissect what this market means for you as a Buyer or Seller. That’s where we can help - let’s build a plan together! 🤝🏿