Prices were still climbing on a yearly basis last month — up 15 per cent over April 2021, according to the Toronto Regional Real Estate Board on Wednesday. But the average selling price of a house or condo dropped 3.6 per cent between March and April — the second consecutive month-over-month decline.
Realtors have been reporting fewer bully offers and bidding wars as the record low interest rates that fuelled housing prices during the recession have begun to rise again. The Bank of Canada hiked its overnight rate from 0.25 per cent to 0.5 per cent in March, then doubled it again to one per cent on April 13. Economists had been expecting the central bank’s overnight rate to rise to 2.25 per cent by the end of the year.
Although condo prices slumped for much of 2021, the real estate board found those home prices continued to rebound in April, rising 14 per cent across the GTA. Condo prices in the 905 zone rose 18 per cent annually, compared to about 13 per cent in Toronto. Sales were also down 34.5 per cent in the city, compared to a slightly lower 32.2 per cent drop in the 905 areas.
New listings were down 11.7 per cent year over year in April and active listings, which includes those homes that didn’t sell the previous month, rose 12.3 per cent. Even though sales have dropped, the GTA continues to suffer from a lack of housing, said real estate board CEO John DiMichele. He said that immigration continues to boost the population and warned that decision makers have to guard against fuelling demand.
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.
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.
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
The Liberals are delivering economic relief to Canadians. But what else is new? This is why we hired them to run things.