Buyers, this is your time : May 2022 Market Update
Buyers, this is your time🙌.
Without sensationalizing anything, Toronto’s May market stats prove that we are finally on track towards more balance. It’s hard to say how far this trend will extend, but what we can say for certain is that buyers have more opportunities now than they have in the past 2 years.
👉From last month, the # of sales were down by 9%, and when compared to last year, down by almost 39%. Here’s the game changing part; the # of new listings in May match last year's numbers almost exactly; and the # of active listings is up by 26% year over year. In summary: less buyers are competing for the same # of listings, meaning they have more negotiating power. Fewer sales, but the same number of listings each month (over 18,000) mean that we are closer to bridging the gap in demand.⚖️
Naturally, this means that listings are taking slightly longer to sell - conditions in offers are back! A property is staying on the market for an average of 18 days before selling (this includes if a property is re-listed, which accounts for almost 26.4% of the “new” listings on the market).🏡
Here’s the fine print; prices are still going up. Supply is still very low. Read: a crash in prices is highly unlikely😅. Despite the shift, across all home types, prices are still up at a rate of 9.4% to make the average house price $1,212,806.
This shift can be attributed largely to the Bank of recent interest rate changes and the immediate effect of increasing interest rates is largely a short-term physiological effect🧠.
Experts point to right now being a temporary window of opportunity. Why? Low unemployment, high job vacancies, rising incomes and record immigration and you guessed it…low supply means that we will likely remain in a very strong real estate market long term.
Buyers have more negotiating power and it is a welcome calm to the entire real estate process for Buyers & Sellers. The reality is great properties, priced right and marketed well are still selling quickly, for competitive $$. These changes allow for conditions like home inspections, financing, etc. to re-enter the discussion.🤩