The Bank of Canada announced to continually raise the interest rate by 0.75% on September 7, 2022 against the high inflation rate. The inflation rate cooled to 7% in August 2022.

The GTA housing market retains to be impacted by higher borrowing costs as per TRREB latest report for September 2022. 5,038 home sales were recorded through MLS system, less 44.1% compared to September 2021. New Listiings were also decreased on a year-over-year basis by 16.7% to 11,237 which is also the lowest number of new listings reported for September since 2002!

During the economic uncertainty, the average selling prices of all low rise properties made their adjustments of reduction compared to September 2021. On the contrary, the condo market segment performed good in terms of the average price on a year-over-year basis increased by 3.2%. It is benefited from the high rental income in current hot market, back-to-school required and low entry price to mitigate the risk from high borrowing costs.

The average selling price dropped to below $1.1m since the Bank of Canada increased interest rate by 100% on 13 Jul 2022 and subequently another hike of 0.75% released on 7 Sept 2022. The trend of average price curve and number of new listings went in opposite directions during the past 3 months. The average price curve was moving upward. In addition, the overall average selling prices (highlighted in red) of September in "416" area were higher than previous month except the detached house segment. Anyway, the property price still depends on the local dynamic and neigbourhood, not concluded in the average price figure.

• Inflation Rate forecasted lower than 7% in September 2022

• "The current overall target for 2023 stands at 447,055 before a very modest increase to 451,000 in 2024." CIC news released on Octber 5, 2022. The latest immigration levels plan for 2023 - 2025 is expected to be announced on 1 November 2022. It will be easier access to permanent residence for physicians in Canada to tackle the doctor shortage.

“Hovering just below $1.1 million, the average selling price may have found some support during the last couple months of summer. With new listings down quite substantially year-over-year and well-below historic norms, some home buyers are quite possibly experiencing tighter market conditions in some GTA neighbourhoods. October generally represents the peak of the fall market, so it will be important to see where price trends head over the next month,” said TRREB Chief Market Analyst Jason Mercer.

Penny Torontow, president of the Ottawa Real Estate Board, said September’s lower sales performance “reflects continued hesitancy among buyers as they watch interest rates rise and consider the speculation surrounding price trends.” The housing data shows the potential buyers still sitting on the sidelines.

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