As housing market cools, surburban home prices and sales are dropping faster than the downtown core

  • 📰 TorontoStar
  • ⏱ Reading Time:
  • 35 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 17%
  • Publisher: 55%

Canada News News

Canada Canada Latest News,Canada Canada Headlines

Due to rising interest rates, Toronto suburbs — which grew in popularity during the pandemic — are now seeing a sharp decline in sales and selling prices.

prompted by rising interest rates is being felt more acutely in the suburbs of Toronto, where sales and selling prices are trending downward into the summer at a fast pace.

Prices in Toronto went up 14.3 per cent year over year, while prices in the rest of the GTA went up 15.4 per cent. Condos appreciated faster in price in the suburbs compared to downtown units. According to the TRREB, the average selling price of a home in the GTA fell 6.4 per cent between March and April, and one per cent between February and March, after almost a year of only upward movement.

It’s also possible that there’s renewed interest in living downtown, he said. After all, with gas prices skyrocketing and employers beckoning employees back to the office, the benefits of a bigger house in the ’burbs might be outweighed by an increasingly expensive commute.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

This is misleading. Sharp decline in sales is because there's no inventory to sell. Demand fluctuates but will return, and along with it, rising prices. Not enough being done about lack of supply.

I wonder...how long before the stories of 'help me! I can't pay for my house anymore!' hit the airwaves?

Who would want to live in a downtown overpriced condo with slow elevators.climbing maintenance fees..that will depreciate rapidly in years ?

Going from an average of 960k to 907k isn't much of a celebration. People are still getting their high bids. Just not as fast and not as many.

Anyone who really benefit from all of this are the ones who bought homes in for example 5+ years ago. You buying a home now is like buying the top of a stock and hoping it'll just keep going. Risky.

Yes. Crash…

I’m happy about that.

Frogs in boiling water. Historic affordability is 2-3X single earner annual income. We have a long way to go before prices are fair and reasonable.

Considering most trades are striking, I see the values going higher. With no supply and there is very little, It is hard to see how the values are dropping. In my area they are still increasing.

Good. I'm sick and tired of all the city folk coming to my piece of paradise and trying to change how things are done here. Bring on 50-60% drops, I could care less.

My advice flee, find a small town that could supply itself with food and one that has fresh water.

Theyre moving to London and increasing prices here 😭😭

Good. A house is not, and has never been, an investment. This is just a lie propagated by those who actually profit from housing. A house for most people is a liability.

This is exactly how it works, it's not a surprise. Prices rise from the financial centre out to the suburbs and they fall from the suburbs inward to the financial centre. First to rise last to fall, last to rise first to fall.

People are moving out of town in droves.

John Pasalis, president of real estate brokerage Realosophy, said though prices may be up year over year, they’re slowing down month over month — and one only has to look at the last few months to get a better idea of what’s to come.

I thought there was no supply, how could price and sales fall. Maybe something else was fuelling all the speculation... hmmm

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 60. in CA

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Toronto-area home sales plunge as higher interest rates cool marketHigher interest rates have taken a bite out of the Toronto area’s seemingly insatiable appetite for real estate, with sales and home prices continuing to soften in April. The Liberals are delivering economic relief to Canadians. But what else is new? This is why we hired them to run things. Imagine that! No need for some hair-brained government scheme. Just increase the cost of borrowing and people won’t have as much to throw at a house. So simple it just might work if they continue raising interest rates Gotta ❤ love how many are applauding a decline in home prices while conveniently ignoring the cost of borrowing, and maintaining a home (remember the inflation we're experiencing? ), is increasing. People just see what they want to see, refusing to look at the entire picture.
Source: TorontoStar - 🏆 60. / 55 Read more »