Toronto’s Real Estate Market Sharply Plunges in April Amid Higher Borrowing Costs

Canada’s hottest real estate market may not be so hot anymore, as higher borrowing costs, coupled with historically-high home prices deter both buyers and sellers.

Latest data from the Toronto Real Estate Board showed that a total of 8,008 properties traded hands in the Greater Toronto Area last month, marking a staggering 27% decline from March, and a 41.2% drop from the 1`3,613 units sold in April 2021. “Based on the trends observed in the April housing market, it certainly appears that the Bank of Canada is achieving its goal of slowing consumer spending as it fights high inflation,” said TRREB President Kevin Crigger.

All types of properties saw double-digit declines in April, particularly those in the suburbs. The broader slump in Toronto’s real estate market also prompted potential property sellers to halt activities, as new listings fell 11.7% compared to April of last year. The slump in real estate activity led to a 3.5% month-over-month decrease in the average selling price, which sat at $1,254,436 in April.

“Despite slower sales, market conditions remained tight enough to support higher selling prices compared to last year. However, in line with TRREB’s forecast, there is evidence of buyers responding to increased choice in the marketplace, with the average and benchmark prices dipping month-over-month,” explained TRREB Chief Market Analyst Jason Mercer.

Selkirk Copper Mines — sponsored Sponsored · Selkirk Copper Mines

Information for this briefing was found via TRREB. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

8 Mining Stocks Our Viewers Asked Us to Review | Sept 14th-18th

Canada Is Finally Fast-Tracking New Mines | John Passalacqua – First Phosphate

Gold & Silver Just Added $2 Billion to This Project | Aya Gold – Bourmadine PEA

Recommended

Cambria Gold Drills 166 g/t Gold and 3,383 g/t Silver Over 3.1 Metres at Premier

Selkirk Copper’s Minto PEA Outlines $494 Million After-Tax NPV and 47.8% IRR

Related News

Canada’s Housing Crisis: New Projections Show Increased Supply Gaps in Key Provinces

The CMHC recently updated its June 2022 Supply Gaps Estimate (SGE) report that assesses the...

Sunday, September 17, 2023, 07:18:00 AM

Increasing Number of Canadian Small Businesses Struggling to Pay Rent Amid COVID-19 Pandemic

As a result of the coronavirus pandemic economic restrictions, a large portion of Canadian businesses...

Friday, June 5, 2020, 11:09:00 AM

Canadian Home Prices Continue Accelerating in August Amid Tight Supply

Home prices across Canada continued to increase in August, as demand continued to exceed the...

Saturday, September 18, 2021, 03:02:00 PM

Toronto Home Sales Hit Another Record in March, Average Price Surges to $1.1M

The largest housing market in Canada was the subject of yet another record-breaking month, as...

Tuesday, April 6, 2021, 02:34:00 PM

Canada’s Construction Spending Weakens in October

Heading into the fall season, Canada’s economy entered yet another standstill as coronavirus cases began...

Monday, December 7, 2020, 03:31:00 PM