𝐍𝐄𝐖𝐒𝐅𝐋𝐀𝐒𝐇! Here are the real estate market stats you need to know for May 2022 vs. 2021 home sales in Toronto, Mississauga, Oakville, Burlington.
𝐌𝐨𝐫𝐞 𝐛𝐚𝐥𝐚𝐧𝐜𝐞𝐝 𝐦𝐚𝐫𝐤𝐞𝐭 𝐜𝐨𝐧𝐝𝐢𝐭𝐢𝐨𝐧𝐬 𝐫𝐞𝐬𝐮𝐥𝐭 𝐢𝐧 𝐠𝐫𝐞𝐚𝐭𝐞𝐫 𝐧𝐞𝐠𝐨𝐭𝐢𝐚𝐭𝐢𝐧𝐠 𝐩𝐨𝐰𝐞𝐫 𝐟𝐨𝐫 𝐁𝐮𝐲𝐞𝐫𝐬.
Sales volume is down, and listing inventory is up as compared to this time last year, almost at par with April’s update depending on the city and property type.
The Bank of Canada rate hikes including the 50-basis point hike on June 1st have indeed affected overall Buyer sentiment as average detached home prices across Toronto, Mississauga, Oakville, and Burlington have dipped month over month, albeit values are up a reasonable amount as compared to May 2021.
As explained in our April 2022 update, the slow-down in selling activity is contributed to a few factors:
◻️ Higher borrowing costs have some Buyers taking a pause from their home search in anticipation of values softening further
◻️ Purchase capability (budget) may have changed for some Buyers with the higher interest rates, along with the possible impact on the down payment for their purchase if they have an existing property to sell, as their current home’s value has likely adjusted.
◻️ More inventory on the market = greater selection for Buyers resulting in less competition
We are no longer in a Seller’s market as Buyers are in the driver’s seat regarding negotiating on price and terms. We have noted the market change month over month with home prices down in a short period of time, therefore if selling your home be sure it’s priced sharp otherwise the end result may be less than what could have been if being priced right from the start. The list price strategy should reflect what’s happening at this time, and in your respective neighbourhood with consideration of the most recent sales activity and competing homes for sale.
It’s also critical to ensure your home is positioned to be the clear choice to attract a Buyer’s interest. Now’s the time to take care of those updates you’ve been waiting on to refresh the look and feel of your home. Especially in the kitchen or baths. Consider even a fresh coat of paint or updating appliances. Improvements don’t have to break the bank – go with the ones that will have the most impact. You only get one chance to make a great first impression to set your home apart from the rest.
Be patient with the process as homes are taking longer to sell. In a way, we were spoiled with the market frenzy that once was and should have realistic expectations today. This doesn’t mean that a property won’t attract a Buyer today or sell for a good price given today’s market activity if the right elements are in place from the pricing strategy to home staging and distinct marketing.
𝙄𝙛 𝙮𝙤𝙪’𝙧𝙚 𝙞𝙣 𝙩𝙝𝙚 𝙢𝙖𝙧𝙠𝙚𝙩 𝙩𝙤 𝙗𝙪𝙮, 𝙞𝙩’𝙨 𝙖𝙣 𝙤𝙥𝙥𝙤𝙧𝙩𝙪𝙣𝙚 𝙩𝙞𝙢𝙚! 𝙏𝙖𝙠𝙚 𝙖𝙙𝙫𝙖𝙣𝙩𝙖𝙜𝙚 𝙤𝙛 𝙩𝙝𝙞𝙨. Even with rising interest rates, they are still lower than they were in the Fall of 2018 when home sales fell to a 10-year low – which also contributed to higher rates and stiffer mortgage rules.
Whether you’re considering buying or selling it’s important to have a knowledgeable Realtor on your side to help navigate our current market conditions.
Get in touch anytime and let’s chat about your goals.
𝗪𝗲 𝘄𝗼𝘂𝗹𝗱 𝗹𝗼𝘃𝗲 𝘁𝗼 𝗵𝗲𝗹𝗽 𝗮𝗻𝗱 𝗮𝗿𝗲 𝗳𝗼𝗰𝘂𝘀𝗲𝗱 𝗼𝗻 𝘆𝗼𝘂𝗿 𝘀𝘂𝗰𝗰𝗲𝘀𝘀!
