Dear Friend, As expected, the spring market kicked off with10,955 homes sold, the third-best March and second-best first quarter on record. The average price in March was $1,299,894, bringing the year-to-date average to $1,299,591, up 18.6 % over the 2021 year-end average of $1,095,381.
As I wrote in January, “Don’t panic”! Prices will continue to increase in 2022, (about 10%) but not at the same rate as they did in 2021. There were 20,038 properties listed in March, providing more choices for buyers, a move towards a more balanced market of supply and demand. BUT…. don’t read this as prices coming down. As more homes come up for sale in the next few months, house prices will still continue to increase, as there is more demand than supply.
Due to the government’s commitment of increasing Canada’s population by over 1.2 million new immigrants over the next 3 years, the population of the GTA will continue to experience rapid growth as our economic strength and diversity continues to attract people from around the world. In order for prices to remain reasonable, housing supply has also to increase substantially.
The holdup? Government red tape in not permitting developers and builders to bring more houses to market. The process of getting building permits is unnecessarily slow and tedious! While I am optimistic that this process will become more streamlined one day, I’m pessimistic about how long consumers have to suffer due to this bureaucracy.
In the meantime, we have a great market! It’s a good opportunity to build an investment portfolio because we know that demand for housing will continue to increase. That means higher rents which will sustain higher costs. If you have children who will be entering university over the next few years, you might consider purchasing a condominium now for them to use later. For some, their home is their best investment, and if that’s the case with you, perhaps now is the time to buy that bigger home that you’ve always wanted.
The key to making a wise choice is having a good investment advisor. I have the knowledge, experience and the resources of a great company to help you achieve your goals. Give me a call, let’s discuss the future!