While demand returned to pre-covid levels, housing stock remained low, leading to steadily rising housing costs that continue to leave many buyers priced out of Toronto’s market.
Often, May is the strongest sales month in any given year; however, 2021 results “bucked” this trend, with sales for the month below the 15,646 deals reported during the housing market peak in March.
Joshua Bennett, a broker for PSR, says he started to notice the change in April and May.
“The market is still strong, but there is an adjustment with the strategy behind pricing the homes, as opposed to just holding back offers for a bidding war.
Alex Hood, a real estate agent at Strata.ca, told STOREYS he has started to notice fewer offers on properties with offer dates listed below market value.
“As the market peaked, I had some buyers who were either priced out or who had stepped back as the competition became too taxing.
“As for sellers, they are still feeling some uncertainty on whether to list.
Although new benchmark prices have been set, we have been seeing less offers on properties that would have received dozens of offers prior.
“As the city begins to re-open, many are looking at condos as a suitable living option.
Even though the market is undoubtedly showing signs of cooling, prices would need to stabilize to see the market rebalance.