High Borrowing Costs Impact to the Soaring Real Estate Market

TRREB reported 8,008 home sales in April 2022 through MLS system, representing a 41.2% decrease compared to April 2021 and a 26.9% decrease compared to previous month, March 2022.  The decline in sales is more at '905' particularly for detached houses.  It is benefited for the potential buyers to have upsizing their homes from more listings available and less competition.

On a annually basis, the average selling price growth is 15%, at $1,254,436, compared to April 2021.  A 3.5% decrease compared to $1.3M in March 2022.  The tight supply remains to support the selling price growth compared to last year.  Some home buyers have moved to sidelines to reconsider their affordability given by a hike in interest rates and other unfavouorable market conditions.

Canada’s key interest rate could go up another half percentage point in June

• "Moving forward, it will be interesting to see the balance the Bank of Canada strikes between combatting inflation versus stunting economic growth and related government revenues as we continue to recover from and pay for pandemic-related programs,” said TRREB President Kevin Crigger.  It is tricky how the huge deficit can be covered after releasing the covid-19 funding program, new federal government policies to attack housing market and increasing interest rates against the high inflation rate (6.7% in March).   In 2021, the real GDP posted a strong 4.6% growth driven by business investment in engineering structures (+3.5%) and home ownership transfer costs (+14.3%).

• Below is a table comparison between 1st Quarter 2020 and April 2022. During the covid-19 pandemic, the strong demand for low-rise properties generated a surge in selling price of a 42%+ increase compared to 1st quarter 2020 (before covid-19 affection) in particular of detached houses nearly 50% increase.  On the contrary, the growth pace of  condo market segment was slow in particular "416" area caused by work from home policy and more home spaces required during the past two years.  It is predicted the demand for condo market will get higher after the economic activities resumed recently due to an affordable entry point as homeownership and the population growth at near record level in next few years.

• Meta, Google and Amazon to significantly beef up their presence and staffing levels in Canada  https://www.cbc.ca/news/business/canada-tech-sector-boom-1.6425879.  Needless to say that these large foreign tech firms to set up shop in Canada to drive economic growth including real estate market  硅谷巨头纷纷来多伦多开分部抢人！房市又得火一把

SUGAR WHARF LAKE VIEW ASSIGNMENTS and EXPRESS 2 CONDOS

Sugar Wharf Assignments 

Address: 95 Lake Shore Boulevard East

Occupancy : Summer - Fall 2022

Sizes : 1 BR, 1+1 BR, 2BR & 3BR

Please contact our team at 647-298-1234 for prices and other details.  The prices can be negotiated. (Only for the serious buyers)