Whether you are buying or selling a house, it is important to know the current real estate market trends and the market performance to make the right decision. So here is the real estate market update for the month of July 2022.
Market conditions remained much more balanced in July 2022 compared to a year earlier. As buyers continued to benefit from more choices, the annual price growth rate has moderated. The MLS® Home Price Index (HPI) Composite Benchmark was up by 12.9% year-over-year.
“The Greater Toronto Area (GTA) population continues to grow and tight labor market conditions will drive this growth moving forward. Despite more balanced market conditions resulting from rapidly increasing mortgage rates, policymakers must continue to take action to boost the housing supply to account for long-term population growth. TRREB has put realistic solutions on the table to address the existing housing affordability challenges. With savings high and the unemployment rate still low, home buyers will eventually account for higher borrowing costs. When they do, we want to have an adequate pipeline of supply in place or market conditions will tighten up again,” said TRREB Chief Market Analyst Jason Mercer.
TRREB is also calling on all levels of government to reassess and clarify policies related to mortgage lending and housing development.
“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.
“With significant increases to lending rates in a short period, there has been a shift in consumer sentiment, not market fundamentals. The federal government has a responsibility to not only maintain confidence in the financial system but to instill confidence in homeowners that they will be able to stay in their homes despite rising mortgage costs. Longer mortgage amortization periods of up to 40 years on renewals and switches should be explored,” said TRREB President Kevin Crigger.
The average selling price was up by 1.2% compared to July 2021 to $1,074,754. Less expensive home types, including condo apartments, experienced stronger rates of price growth as more buyers turned to these segments to help mitigate the impact of higher borrowing costs.
Apart from the overall real estate market trend, it is important to know the area-wise trend as well to invest in the right place.
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