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.