May 2022 home sales down 39% from last year, prices up almost 10%: Toronto board
The Greater Toronto Area housing market is becoming more balanced as May home sales dropped 39 per cent from a year earlier and prices rose almost 10 per cent, the Toronto Regional Real Estate Board said Friday.
The Ontario board found last month’s home sales totalled 7,283, down from 11,903 in May 2021 and 7,989 this past April.
The board and brokers attributed the drop in sales to higher borrowing costs that materialized because of interest rate hikes and were coupled with inflationary pressures that weighed on spending.
However, they found buyers had more negotiating power last month as the market started to balance out.
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The Greater Toronto Area housing market is becoming more balanced as May home sales dropped 39 per cent from a year earlier and prices rose almost 10 per cent, the Toronto Regional Real Estate Board said Friday.
The Ontario board found last month’s home sales totalled 7,283, down from 11,903 in May 2021 and 7,989 this past April.
The board and brokers attributed the drop in sales to higher borrowing costs that materialized because of interest rate hikes and were coupled with inflationary pressures that weighed on spending.
However, they found buyers had more negotiating power last month as the market started to balance out.
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“The activity has slowed and in some places, close to a halt."
“Interest rates are weighing on them and ? a lot think that the prices are going to drop a lot further and they’re holding out for that. It appears that it’s going towards a buyer’s market, so they’re not anxious to make a decision now.”
In recent weeks, realtors have noticed the pace of sales is not as torrid as it was at the start of the year. Many sellers now garner fewer offers and bidding wars for their home, pushing some to accept a lower price than they may have seen months ago.
The average home price hit $1,212,806 in May, up more than nine per cent from $1,108,124 during the same month last year.
However, the average home price was still lower than $1,253,567 in April, the third consecutive month where the market experienced a drop.
“Buyers are sitting on the sidelines right now and trying to take stock of what’s really happening,” said Lewin.
“Their decisions are taking a lot longer than they have in previous years.”
Where earlier this year properties were snatched up as soon as or not long after being listed, Lewin has seen many sit for weeks and even months.
She listed a property in Brampton for about $749,000 in a neighbourhood where homes were marketed for about $900,000 before. It has sat for two months.
“We’re not getting any action. It’s pretty much like crickets,” she said. “And it’s a great neighbourhood and it shows well.”
She’s seen similar a reaction with a renovated condo in Toronto she listed.
The average price of a detached home in the city of Toronto, which is linked to the 416 area code rose by 12 per cent since last year to hit more than $1.9 million in May, while semi-detached properties increased by about eight per cent to reach more than $1.4 million.
Townhouses were up by roughly 10 per cent to total slightly more than $1 million, while condos also saw a 10 per cent increase to an average $793,000.
Detached homes were up about eight per cent to more than $1.4 million in the 905, an area surrounding Toronto that includes municipalities such as Vaughan, Mississauga and Brampton.
Semi-detached properties and townhouses in the area were up by 14 per cent each to reach more than $1 million and $950,000 respectively.
Condos in the 905 saw 20 per cent growth to an average $722,000.
“There is now a psychological aspect where potential buyers are waiting for a bottom in price. This will likely continue through the summer,” Kevin Crigger, TRREB’s president, predicted in a release.
His board also found the number of homes people had to choose from was little changed from a year ago. May saw 18,679 new listings, while 18,593 properties hit the market during the same month in the year prior.
BMO Capital Markets’ chief economist Doug Porter interpreted the month’s numbers as a sign of a cooling market, but warned the rapid rise in rates recently is “a clear and present danger to the teetering housing market.”
“The pullback in sales has now gone far beyond simply reversing the outsized strength a year ago, and is now in well-below-average terrain, with inventories building quickly,” he wrote in a note to investors.
“We can’t help but wonder how loud the cries for ‘more supply’ will be in the months ahead amid fading sales and swelling listings.”
.
“Interest rates are weighing on them and ? a lot think that the prices are going to drop a lot further and they’re holding out for that. It appears that it’s going towards a buyer’s market, so they’re not anxious to make a decision now.”
In recent weeks, realtors have noticed the pace of sales is not as torrid as it was at the start of the year. Many sellers now garner fewer offers and bidding wars for their home, pushing some to accept a lower price than they may have seen months ago.
The average home price hit $1,212,806 in May, up more than nine per cent from $1,108,124 during the same month last year.
However, the average home price was still lower than $1,253,567 in April, the third consecutive month where the market experienced a drop.
“Buyers are sitting on the sidelines right now and trying to take stock of what’s really happening,” said Lewin.
“Their decisions are taking a lot longer than they have in previous years.”
Where earlier this year properties were snatched up as soon as or not long after being listed, Lewin has seen many sit for weeks and even months.
She listed a property in Brampton for about $749,000 in a neighbourhood where homes were marketed for about $900,000 before. It has sat for two months.
“We’re not getting any action. It’s pretty much like crickets,” she said. “And it’s a great neighbourhood and it shows well.”
She’s seen similar a reaction with a renovated condo in Toronto she listed.
The average price of a detached home in the city of Toronto, which is linked to the 416 area code rose by 12 per cent since last year to hit more than $1.9 million in May, while semi-detached properties increased by about eight per cent to reach more than $1.4 million.
Townhouses were up by roughly 10 per cent to total slightly more than $1 million, while condos also saw a 10 per cent increase to an average $793,000.
Detached homes were up about eight per cent to more than $1.4 million in the 905, an area surrounding Toronto that includes municipalities such as Vaughan, Mississauga and Brampton.
Semi-detached properties and townhouses in the area were up by 14 per cent each to reach more than $1 million and $950,000 respectively.
Condos in the 905 saw 20 per cent growth to an average $722,000.
“There is now a psychological aspect where potential buyers are waiting for a bottom in price. This will likely continue through the summer,” Kevin Crigger, TRREB’s president, predicted in a release.
His board also found the number of homes people had to choose from was little changed from a year ago. May saw 18,679 new listings, while 18,593 properties hit the market during the same month in the year prior.
BMO Capital Markets’ chief economist Doug Porter interpreted the month’s numbers as a sign of a cooling market, but warned the rapid rise in rates recently is “a clear and present danger to the teetering housing market.”
“The pullback in sales has now gone far beyond simply reversing the outsized strength a year ago, and is now in well-below-average terrain, with inventories building quickly,” he wrote in a note to investors.
“We can’t help but wonder how loud the cries for ‘more supply’ will be in the months ahead amid fading sales and swelling listings.”
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List of Business for sale Under $350,000
1. Dry Cleaning/Laundry
2. Beauty Salon/Hair Salon
3. Restaurant
4. Convenience Store
5. Bakery Business
6. Fruit & Bubble Tea
7. Copy/Printing
8. Car Wash
9. Cafe
10. Fruit & Floral Market
Need more information:
Call Hojjatollah Izady
(647) 772-9502
hoizady@yahoo.com
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Debt-to-disposable-income ratio eases down from record 185%
Statistics Canada says Canadians owe $1.83 in consumer debt for every dollar of income they have
Statistics Canada says the amount Canadians owe relative to their income pulled back in the first quarter from the record level set in the fourth quarter of 2021, as incomes grew faster than debt.
The agency says, on a seasonally adjusted basis, household credit market debt as a proportion of household disposable income fell to 182.5 per cent compared with the record 185 per cent in the previous quarter.
In other words, it says there was $1.83 in credit market debt for every dollar of household disposable income in the first quarter.
The decrease came as household credit market debt grew two per cent, but household disposable income gained 3.3 per cent.
Mortgage debt totalled nearly $2 trillion, while non-mortgage loans stood at $706.2 billion.
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Statistics Canada says Canadians owe $1.83 in consumer debt for every dollar of income they have
Statistics Canada says the amount Canadians owe relative to their income pulled back in the first quarter from the record level set in the fourth quarter of 2021, as incomes grew faster than debt.
The agency says, on a seasonally adjusted basis, household credit market debt as a proportion of household disposable income fell to 182.5 per cent compared with the record 185 per cent in the previous quarter.
In other words, it says there was $1.83 in credit market debt for every dollar of household disposable income in the first quarter.
The decrease came as household credit market debt grew two per cent, but household disposable income gained 3.3 per cent.
Mortgage debt totalled nearly $2 trillion, while non-mortgage loans stood at $706.2 billion.
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بنابر یک نظرسنجی، تقریباً یک چهارم صاحبخانههای کانادایی میگویند در صورت افزایش بیشتر نرخ بهره، مجبور به فروش خانه خود میشوند.
به گزارش رسانه هدهد کانادا، این نظرسنجی که بین 14 تا 20 آوریل انجام شده نشان میدهد که 18درصد از صاحبان خانههای مورد نظرسنجی در حال حاضر در مرحلهای هستند که توانایی خرید خانههای خود را ندارند.
این نظرسنجی همچنین نشان داد که بیش از یک پنجم کاناداییها پیش بینی میکنند که افزایش نرخ بهره بر کل وام مسکن، بدهی و وضعیت مالی آنها تاثیرات منفی قابل توجهی بگذارد.
بانک مرکزی کانادا همچنین در مسیر افزایش نرخ قرار دارد زیرا تلاش میکند تورم 6.8 درصدی را که بالاترین نرخ تورم در31 سال گذشته بوده را مهار کند.
در اول ژوئن، بانک مرکزی نرخ بهره اصلی خود را نیم درصد افزایش داد و به 1.5 درصد رساند.
نتایج نظرسنجی همچنین نشان میدهد که دو سوم کاناداییها مالکیت خانه را در جامعه محلی مقرون به صرفه نمیدانند.
علاوه بر این، نزدیک به نیمی از کاناداییهای بدهکار میگویند بدهیها بر سلامت روان آنها تأثیر میگذارد و تقریباً 50 درصد کاناداییها میگویند که برای رسیدگی به هزینههای غافلگیرکننده مشکل دارند.
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به گزارش رسانه هدهد کانادا، این نظرسنجی که بین 14 تا 20 آوریل انجام شده نشان میدهد که 18درصد از صاحبان خانههای مورد نظرسنجی در حال حاضر در مرحلهای هستند که توانایی خرید خانههای خود را ندارند.
این نظرسنجی همچنین نشان داد که بیش از یک پنجم کاناداییها پیش بینی میکنند که افزایش نرخ بهره بر کل وام مسکن، بدهی و وضعیت مالی آنها تاثیرات منفی قابل توجهی بگذارد.
بانک مرکزی کانادا همچنین در مسیر افزایش نرخ قرار دارد زیرا تلاش میکند تورم 6.8 درصدی را که بالاترین نرخ تورم در31 سال گذشته بوده را مهار کند.
در اول ژوئن، بانک مرکزی نرخ بهره اصلی خود را نیم درصد افزایش داد و به 1.5 درصد رساند.
نتایج نظرسنجی همچنین نشان میدهد که دو سوم کاناداییها مالکیت خانه را در جامعه محلی مقرون به صرفه نمیدانند.
علاوه بر این، نزدیک به نیمی از کاناداییهای بدهکار میگویند بدهیها بر سلامت روان آنها تأثیر میگذارد و تقریباً 50 درصد کاناداییها میگویند که برای رسیدگی به هزینههای غافلگیرکننده مشکل دارند.
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New Condo development by Block Developments located at Dufferin St & Queen St W, Toronto.
Est. Occupancy: December 2022
Minutes to walk to the 301 & 501 Streetcar for travelling to work, play, entertainment or simply exploring all the city has to offer. Steps to Liberty Village, King West. Close to BMO Field, Exhibition Place, Lake Ontario, Forty York, the CNE and so much more! Close proximity to Gardiner Expressway. Minutes away to Trinity Bellwoods Park.
Amenities:
Barbeques, Catering Kitchen, Executive Concierge in Lobby, Fitness Center with Cardio & Weight Equipment, Lounge Areas with Fire pit, Dining & Meeting Room, Eco Friendly Green Roofs, Sunbathing, Designer Decorated Party Room with Full Kitchen, Pet Spa, Security Cameras, Rooftop Terrace Lounge
Prices Start from $1,334,900 - $1,745,900
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Ceiling Height: 9" - 10"
For Booking please call:
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Realtor
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647-772-9502
hoizady@yahoo.com
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Est. Occupancy: December 2022
Minutes to walk to the 301 & 501 Streetcar for travelling to work, play, entertainment or simply exploring all the city has to offer. Steps to Liberty Village, King West. Close to BMO Field, Exhibition Place, Lake Ontario, Forty York, the CNE and so much more! Close proximity to Gardiner Expressway. Minutes away to Trinity Bellwoods Park.
Amenities:
Barbeques, Catering Kitchen, Executive Concierge in Lobby, Fitness Center with Cardio & Weight Equipment, Lounge Areas with Fire pit, Dining & Meeting Room, Eco Friendly Green Roofs, Sunbathing, Designer Decorated Party Room with Full Kitchen, Pet Spa, Security Cameras, Rooftop Terrace Lounge
Prices Start from $1,334,900 - $1,745,900
957 sq ft to 1444 sq ft
Ceiling Height: 9" - 10"
For Booking please call:
Hojjatollah Izady
Realtor
HomeLife/Cimerman Real Estate Ltd., Brokerage
647-772-9502
hoizady@yahoo.com
.
Home Prices in Canada Fall Again as Mortgage Pain Intensifies
Canadian home prices declined for the second straight month as surging borrowing costs spur a reversal in what had been one of the world’s hottest housing markets.
Canada’s benchmark home price fell 0.8% to C$822,900 in May from the month before, according to data released Wednesday by the Canadian Real Estate Association. Cities in Ontario showed the biggest declines.
Sales also dropped sharply, falling 8.6% from the previous month, the association said.
The drop comes after Canadian home prices shot up more than 50% over a two-year period as ultra-low interest rates and demand for larger living spaces led to bidding wars for properties.
Now, as the Bank of Canada tries to rein in inflation that’s running at nearly 7%, mortgage rates are rising quickly and policy makers have identified high house prices and heavily-indebted homeowners as major vulnerabilities in the economy.
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Canadian home prices declined for the second straight month as surging borrowing costs spur a reversal in what had been one of the world’s hottest housing markets.
Canada’s benchmark home price fell 0.8% to C$822,900 in May from the month before, according to data released Wednesday by the Canadian Real Estate Association. Cities in Ontario showed the biggest declines.
Sales also dropped sharply, falling 8.6% from the previous month, the association said.
The drop comes after Canadian home prices shot up more than 50% over a two-year period as ultra-low interest rates and demand for larger living spaces led to bidding wars for properties.
Now, as the Bank of Canada tries to rein in inflation that’s running at nearly 7%, mortgage rates are rising quickly and policy makers have identified high house prices and heavily-indebted homeowners as major vulnerabilities in the economy.
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The central bank has raised its key policy rate from 0.25% to 1.5% since the beginning of March, while signaling even more aggressive increases could be coming next month.
“May picked up where April left off, with sales activity continuing to slow and softening prices in many parts of the country,” CREA Chair Jill Oudil said in a statement. “We are in a period of rapid change, but one that should settle to a more balanced housing market in time.”
Last week, at its annual review of the financial system, the central bank said those who bought homes during the pandemic could become vulnerable as rates rise because they took on high levels of debt to do so, and the meager equity they’ve built up so far could be wiped out as prices fall.
The markets driving the national price decline are smaller cities in Ontario that experienced the biggest gains during the pandemic boom, as buyers priced out of Toronto looked further afield. Cambridge, Ontario, about an hour outside Toronto, saw benchmark prices fall 4.6% in May from the previous month, while home prices in North Bay, almost four hours away, fell 4%, the data show.
In a sign the pain is starting to spread, the same pattern held around Vancouver, where the biggest losses in surrounding markets like Chilliwack, British Columbia, where prices fell 3%.
Still, the cooling in the national market has only brought activity back to levels that are more in line with historical norms. The number of sales in May was slightly above the 10-year average for the month, for example.
The ratio of sales to new listings, a measure of market tightness, fell to 57.5% -- a three-year low that is close to its longer-term average, data from the real estate association showed.
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“May picked up where April left off, with sales activity continuing to slow and softening prices in many parts of the country,” CREA Chair Jill Oudil said in a statement. “We are in a period of rapid change, but one that should settle to a more balanced housing market in time.”
Last week, at its annual review of the financial system, the central bank said those who bought homes during the pandemic could become vulnerable as rates rise because they took on high levels of debt to do so, and the meager equity they’ve built up so far could be wiped out as prices fall.
The markets driving the national price decline are smaller cities in Ontario that experienced the biggest gains during the pandemic boom, as buyers priced out of Toronto looked further afield. Cambridge, Ontario, about an hour outside Toronto, saw benchmark prices fall 4.6% in May from the previous month, while home prices in North Bay, almost four hours away, fell 4%, the data show.
In a sign the pain is starting to spread, the same pattern held around Vancouver, where the biggest losses in surrounding markets like Chilliwack, British Columbia, where prices fell 3%.
Still, the cooling in the national market has only brought activity back to levels that are more in line with historical norms. The number of sales in May was slightly above the 10-year average for the month, for example.
The ratio of sales to new listings, a measure of market tightness, fell to 57.5% -- a three-year low that is close to its longer-term average, data from the real estate association showed.
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▪️با افزایش تدریجی نرخ بهره قیمت خانه در حال کاهش است و بگفته Robert Hogue یکی از اقتصاددانان بانک RBC فروشنگان بسرعت شانس خود برای بفروش رساندن ملک در بازار قدرتمند را از دست می دهند،هرچند شرایط عرضه و تقاضا هنوز خریداران را در شرایط خوبی قرار نداده است.
▪️در ماههای آپریل و می فروش ملک 8.6 درصد کاهش یافته و در عین حال لیستینگ های ملک بصورت ماه به ماه 4.5 درصد افزایش داشته است. نسبت فوش-به لیستینگ های جدید به پایین تر شکل خود از آپریل 2019 یعنی 57.5 درصد رسیده است. بگفته وی این انتظار وجود دارد با افزایش مجدد نرخ بهره، کاهش قیمت ملک همچنان ادامه داشته باشد و سرد شدن ایجاد شده در ماههای اخیر، در ماههای آینده نیز تشدید یابد و در نهایت منجر به اصلاح گسترده قیمت ها شود.
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▪️در ماههای آپریل و می فروش ملک 8.6 درصد کاهش یافته و در عین حال لیستینگ های ملک بصورت ماه به ماه 4.5 درصد افزایش داشته است. نسبت فوش-به لیستینگ های جدید به پایین تر شکل خود از آپریل 2019 یعنی 57.5 درصد رسیده است. بگفته وی این انتظار وجود دارد با افزایش مجدد نرخ بهره، کاهش قیمت ملک همچنان ادامه داشته باشد و سرد شدن ایجاد شده در ماههای اخیر، در ماههای آینده نیز تشدید یابد و در نهایت منجر به اصلاح گسترده قیمت ها شود.
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