GTAHome.com Toronto Real Estate Market Outlook – May 2022
Tags: Toronto real estate market outlook
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Let us start May 2022 greater Toronto real estate market update with warren buffet famous quote first, “be fearful when others are greedy, and be greedy when others are fearful”. I hope you can keep this famous quote in mind.
The interest rate increases were expected to slow down inflation, which had an immediate impact on the real estate market. It eliminated some buyers from being able to qualify for financing or they had to lower their budget, but the greatest impact to the real estate market was psychological. Having said so, most of the buyers would expect the real estate market to drop even further, I would agree as well. In my opinion, we may see the bottom in September which is roughly 100 days after the provincial election. However, I do not expect the real estate market to drop dramatically from now or recover rapidly in the next few months.
Let us look at the April sales report. 8,008 homes sold through the Toronto Real Estate Board’s MLS System, 27% fewer than March. When is the market is too hot, there had to be a correction. The correction varies in different areas. Some neighborhood’s prices corrected by 15% or even a lot more simply it is further away from the cities. Meanwhile in the more desirable neighbors, the prices dropped much less.
I recalled conversations with a client before in 2019. When I told him to wait another week so I can negotiate a lower price with the seller, this is exactly what he told me “I don’t need to wait for the bottom, this house is the one my family like. I am happy to buy it now since I already avoid paying the premium. More and more immigrants will choose greater Toronto to grow their families, the real estate price will simply continue to increase in the long run” Yes, he was totally right, and he is happy with the decision he made.
When the real estate market cools down, the most important thing is to work with professional, experienced real estate agents when you consider buying or selling properties. You will need a team that can help you achieve your goals. Give us a call, let us discuss how we can help with your real estate needs. Again, we have years of experience to serve at your convenience.
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