| What’s ahead for the spring market? There are a number of factors that may contribute to the GTA spring housing market. In March, we saw GTA inventory levels triple from the low inventory reported in December 2021. However, this may be a return to normal seasonality, as it’s typical to see a supply increase around this time of year. The Bank of Canada will make another interest rate announcement on April 13 and we could see another rate hike following the one in March. Inflation continues to rise across the country and the world. We saw gas prices accelerate following Russia’s invasion of Ukraine. For some homebuyers, this might impact their decision to make any big purchases in the immediate future. It could also reverse the recent trend of people wanting to move further away from the city. The Ford Government recently announced an increase on foreign home buyers tax from 15% to 20% in the Greater Golden Horseshoe region in southern Ontario As COVID-19 restrictions continue to ease, many people will begin to resume activities such as commuting to work, planning vacations, hosting events, and participating in more social activities. It will also mean the return of more steady immigration to Canada. If GTA housing supply continues to increase, interest rates continue to rise, and environmental and geopolitical factors continue to influence homebuying decisions, we could see a shift to a more balanced market. However, there are other factors to offset this including increased demand for condos and homes in the GTA. These and other trends will make the next few months important to watch. |
