The Future of the Toronto Real Estate
By Digital Aptech - Jun 09,2022
The Toronto real estate market has been experiencing a landslide as the pandemic transformed future homeowners to look toward suburbia and small towns.
Real estate experts have expressed that the pandemic has applied a psychological effect to home buyers. The reports of a post-pandemic analysis within a two-year period for Canada’s home prices showed that the highest growth rate of homes is now found within suburbia and small towns. Regions such as Hamilton and Kitchener-Waterloo, are some examples of suburban communities having the greatest value and growth potential.
Past sales and prices however are unclear indicators of the market’s future. Taking a look at Toronto’s ratio of demand and supply for homes analysis, Toronto boasted its market being the seller’s market (above a 60% ratio of home sales vs. demand) in all of 2021 going up above the 110% ratio.
In comparison, the recent report by the Toronto Regional Real Estate Board (TRREB), its Market Watch report, compared the data from May 2022 to last year’s previous performance. With 7,283 homes sold within the GTA, the report exposed a 38.8% yearly decline and a staggering 9% drop from the previous month in April – putting Toronto within the buyer’s market (40% and less ratio of home sales vs. demand)
As the overheated housing market of Toronto sparks up debates and discussions surrounding its current buyers market. Many experts see that the sales-to-new-listing will not recover during the summer months.
Kevin Crigger, TRREB’s president shared with CBC news that “There is now a psychological aspect where potential buyers are waiting for a bottom in price. This will likely continue through the summer,”.
With this ongoing pressure and trend continuing into the fall season, there will be an effect on the runway set for the future of the sales-to-new-listings ratio. With previous analysis, the summer months presented a reduction in average prices throughout the season.
With previous data and many months unknown to us yet, Toronto is speculated to place itself at a good spot currently. New home buyers can expect a soft landing for the ever-changing housing market, with very little concern for a market crash.