GTA Housing Market Adjusts

The Greater Toronto, ON, Area (GTA) housing market continued its adjustment to higher borrowing costs, with the number of transactions down on a monthly and annual basis, says the Toronto Regional Real Estate Board (TRREB). As has been the case with previous rate tightening cycles, some home buyers have moved to the sidelines to determine how they will reposition themselves in the marketplace given the higher rate environment and related impact on affordability. “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. Negotiated mortgage rates rose sharply over the past four weeks, prompting some buyers to delay their purchase. 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,” says Kevin Crigger, TRREB’s president. GTA REALTORS reported 8,008 homes sold through TRREB’s MLS System in April, a 41.2 per cent decrease compared to April 2021 and a 27 per cent decrease compared to March 2022.