As forecast, the rising mortgage interest rates (not to mention other factors at play, like the war in the Ukraine, inflation, and ongoing supply chain problems) directly impacted the number of residential properties reported sold in April. The five-year fixed mortgage rate was 4.19 percent at the end of April. In February, the five-year rate was 2.79 percent, an increase of more than 50 percent in a mere two months. Coupled with the mortgage stress test that all borrowers must undergo when qualifying, it is not surprising that many buyers, particularly first-time buyers, have been forced out of the market. Those who qualify may have had to lower their price-point expectations.
One should not interpret the decline in sales as indicating that the Toronto and area residential resale market is softening or becoming more affordable. Properties sold at lightning speed in April and at strong prices. Prices were lower than the record achieved in February ($1,334,408) but still 15 percent higher than the average sale price of $1,090,414 delivered last year. This April, the average sale price came in at $1,254,436, a 6 percent decline from February's record number.
In April, 8,008 properties were reported sold, down 41 percent from the 13,613 properties that changed hands last April. Sales reported in April 2021 remain the second-highest monthly total, only behind the 15,613 reported in March of last year. It is important to note that no month has come close to April's numbers since last April's reported sales. The best month after April last year was May, reporting 11,903 sales and 10,939 properties reported sold in March of this year. Most months reported sales well under 10,000. This April's sales were consistent with reported sales since the record peak early in 2021.
As forecast, the rising mortgage interest rates (not to mention other factors at play, like the war in the Ukraine, inflation, and ongoing supply chain problems) directly impacted the number of residential properties reported sold in April. The five-year fixed mortgage rate was 4.19 percent at the end of April. In February, the five-year rate was 2.79 percent, an increase of more than 50 percent in a mere two months. Coupled with the mortgage stress test that all borrowers must undergo when qualifying, it is not surprising that many buyers, particularly first-time buyers, have been forced out of the market. Those who qualify may have had to lower their price-point expectations.
One should not interpret the decline in sales as indicating that the Toronto and area residential resale market is softening or becoming more affordable. Properties sold at lightning speed in April and at strong prices. Prices were lower than the record achieved in February ($1,334,408) but still 15 percent higher than the average sale price of $1,090,414 delivered last year. This April, the average sale price came in at $1,254,436, a 6 percent decline from February's record number
In April, 8,008 properties were reported sold, down 41 percent from the 13,613 properties that changed hands last April. Sales reported in April 2021 remain the second-highest monthly total, only behind the 15,613 reported in March of last year. It is important to note that no month has come close to April's numbers since last April's reported sales. The best month after April last year was May, reporting 11,903 sales and 10,939 properties reported sold in March of this year. Most months reported sales well under 10,000. This April's sales were consistent with reported sales since the record peak early in 2021.
