May’s numbers reflect the ongoing shift that we’re seeing in the market. We are now 3 months into the trend that started in mid-March. Buyers are holding off right now as they digest the new interest rates (they have been going up) and are waiting to see where the market lands.

Interestingly you’ll notice that condos have fared much better over the last 3 months than low-rise housing. We’ve seen on average an about a 15% decline from the market peak in February. Condos have been pretty flat or just slightly down during that time. I believe this reflects the fact that during the pandemic we saw the price for low-rise homes accelerate two times, once at the beginning and once again at the end, where condos only had one surge closer to the end.

So let’s put this all in perspective. The prices that we see now are less than the peak 4 months ago, however, they are still above where we were just a year ago. Even with the adjustment to pricing, we are still holding strong in the GTA because of all of the fundamentals that we have. I would expect the buyer’s market that we are in to continue for a few more months until we start to see a plateau in mortgage rates, and then, for us to move into a more balanced market.

Fundamentally we are undersupplied in the GTA, we don’t have enough new housing being built and we are adding to our population at one of the highest rates on record through immigration. The outlook for owning real estate in the GTA is still very strong and will continue to be for years to come.

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