In July, sales activity in the GTA continued to slow in comparison to 2021. Prices have also continued to moderate following the peak experienced earlier this year - however, average home prices remain higher than they were in July 2021 across Oakville, Burlington, Milton, Mississauga, Toronto and Hamilton! Benchmark home prices remain 12.9% higher than they were a year ago.
"Compared to this time last year, the July 2022 market in Oakville, Milton and Halton Hills has seen a balance that is much more digestible for consumers," said OMDREB President Vishal Kapoor. With more choice and more value for money (particularly in the detached property segment), buyers looking to enter the market or move up the ladder are flushed with options and have entered a period of strategic opportunity. A more balanced market offers benefits to both buyers and sellers. Buyers are now enjoying increased negotiating power in terms of both price and purchase agreement content. For sellers, year-over-year price appreciation is still holding steady, and long term gains are north of 130% over a ten-year period within the GTA.
Following the regular seasonal trend, transactions decreased compared to the previous month with 4,912 sales recorded in July. This is a 47% decrease compared to the previous year. The average number of days on market was 19 in July 2022, two more than what was recorded in June 2022. We have less new listings hitting the market year-over-year dropping by 4.1%.
The Bank of Canada is set to make the next interest rate announcement on September 7th. As the Bank is targeting a rate of around 3.5%, following the aggressive hike we saw in July, the following increase is not expected to be as high. Following the pattern of increases and decreases, we can anticipate these hikes will be temporary and look forward to a possible decline sometime in 2023.
"Many GTA households intend on purchasing a home in the future, but there is currently uncertainty about where the market is headed. Policymakers could help allay some of this uncertainty. As higher borrowing costs impact housing markets, TRREB maintains that the OSFI mortgage stress test should be reviewed in the current environment" said TRREB CEO John DiMichele.
Now more than ever, having an experienced real estate representative by your side is crucial. Contact a trusted advisor from the Dan Cooper Group today - we have the experience to guide you to success!
Oakville Stats by Housing Type (TRREB)
Burlington Stats by Housing Type (TRREB)
Milton Stats by Housing Type (TRREB)
Mississauga Stats by Housing Type (TRREB)