As outlined in this months GTA & surrounding area's infographic, April stats are in and the market is gradually leveling across the board. On street level, buyers are responding to more selection of active listings and multiple offers are still being submitted on updated/rarely offered properties. Sales will slow as we approach the June 2nd provincial elections, combined with an anticipated BoC overnight rate increase on July 13th. The overnight rate currently sits at 1%.
“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.” said TRREB President Kevin Crigger.
Immigration is rising and along with it will be demand for housing. Canada welcomed over 405,000 new permanent residents in 2021—the greatest number of newcomers in a year in Canadian history. Following a record year for study permits in 2019, IRCC increased its output by 32% in 2021 by finalizing almost 560,000 study permit applications. 147,000 permanent residence final decisions in the first quarter of 2022.
The Canadian unemployment rate has reached an all-time low of 5.3 percent since comparable data became available in 1976. Great indication of a recovering society.
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