A healthy correction is underway 

The average house prices in Toronto continue their decline after they fell another $47 000 in July 2022. This marks the fourth consecutive month of home prices dropping. With the latest price drop in home prices, the gains from 2022 have been wiped out, and the average home price is now at the lowest level since 2021. For many, this is not cause for panic but a healthy, much-needed correction in home prices. After the massive rally in home prices over the last few years, the real estate market seems to be going through a healthy price correction. 

Sales are slowing down 

The number of sales is down 47% from July last year and 24% from the prior month of June 2022. In total, there were 4912 homes sold in July. The average home price sold in July was $ 1,157,500, down 3.9% from the previous month. However, the home prices remain 12.9% higher than in July last year, so the annual increase in home prices is still good if you look at the bigger picture. A significant contributing factor appears to be the rising interest rates, with the 1% interest rate hike in mid-July being the largest increase in the last 24 years. Meanwhile, the number of new listings is down 4.1% year over year. 

Market forecast 

The higher interest rates and inflation concerns are the major factors driving the market currently. The interest rates look set to continue rising as the effort to combat inflation continues. This is likely to cause the real estate market correction to continue. Money is not as cheap to borrow as last year, and buyers are more tentative about making a large purchase such as a home right now. 

Looking to sell 

The market is a little more challenging for sellers in 2022 than it has been for some time, but there are still buyers in this market who are just a little more cautious about borrowing money. If you are looking it sell, it is more vital than ever to market your property as effectively as possible. This is why you should consider partnering with a real estate photography expert like SnapHouss. We do real estate photography, 3D virtual tours, cinematic videos, and more! We currently service Canada and the US, and our packages start from $99, with various add-ons available for each package!