The end of 2021 brought change in home sales from mid year cooling to levels we haven’t seen from beginning of active spring 2021. Total number of GTA sales exceeds last year and price is rising (compare to last year sales up to 15% and that is still may go up by the end of the 2021) even in condo segment forcing potential Buyers to increase their budgets to beat the competitions. The multiple bidding is back on almost every well priced property.
What are market conditions pushing those sales to new high limits?
- The inventory at near historical lows due to pandemic and tight supply of newly built homes.
- Bank of Canada rate is 0.25% and it is historically low. Some buyers rushing to secure deal before interest rates will rise.
- Positive news about economic, income and savings growth also trigger those sales.
What factors may change GTA real estate market in 2022?
- Interest rate increase will reduce buyers’ budget so until Bank of Canada keeps low interest, we have such unpredictable situation.
- Any negative news like mortgage rules changes, capital gain taxation change for prinsiple residence ( in USA limit is 500K for over you have to pay taxes)
- Availability of higher % income secured instruments on financial markets will ease the demand. Currently where is no alternative for savings vs investing to real estate and that results in overpricing the similar properties compare to USA and other countries.
- On the other hand, tight supply of homes, new immigrants’ arrival and when large portion of population moving to home buying years all that combined will always keep prices going up on a long-time scale.
If you considering to sell or invest to real estate in GTA area please contact me via phone or email me: [email protected]
Regards, Sergey Bogdanets