Following the Bank of Canada’s interest rate increase, we are finally seeing the red hot Toronto market begin to cool down, making way for buyers who have been wary of entering the competitive market. Some cities are leading the way in terms of becoming more affordable and opening up opportunities for those sitting on the fence. Below are the four most affordable cities in the GTA based on average composite home price index (HPI).
Home Prices are Becoming more Affordable Across Toronto and the GTA
The April 2022 numbers from the Toronto Regional Real Estate Board (TRREB) show that the Home Price Index (HPI) Composite Benchmark was down in comparison to the March level, with the average selling price being $1,254,436 in April, compared to $1,300,082 in March. This is great news for buyers, especially those that have locked in a pre-approved mortgage rate.
The majority of homes sold were townhouses and detached, with more than 1000 townhouse sales and over 2700 detached home sales in the GTA. The average price was $997,416 and $1,526,791 respectively, a year-over-year price increase of 20% and 16.8%. Month-over-month, the average price of townhouses fell by 7.6% in April, and detached homes by 6.5%. In the City of Toronto, the majority of sales were condo apartments, with an average sale price of $820,835.
“It is anticipated that there will be enough competition between buyers to support continued price growth relative to 2021, but the annual pace of growth will moderate in the coming months,” said TRREB Chief Market Analyst, Jason Mercer. This signals a more balanced market and the time for motivated buyers to make their move.
The Four Most Affordable Cities in the GTA Right Now
Here are the four cities with the most affordable average price in the GTA as of April 2022.
The leader on our list of most affordable cities in the GTA is Brock. The average price was $857,224 in April, meaning that Brock homes can be scooped up for $200,000 less than the GTA average. There were 13 home sales and 51 new listings. This led to the sales-to-new-listings ratio (SNLR), the measure of available inventory and new listings entering the market, of 69.2%.
Second on our list is Essa. The average price was $918,126 in April, which much to the delight of buyers is $170,000 less than the average in the GTA. There were a total of 39 sales and 96 new listings, for a SNLR of 68%.
The average price in Oshawa was $936,561. It was a busy month for real estate in the city, with the average home price coming in $150,000 below the GTA average, there were 296 sales and 636 new listings, for a SNLR of 75.5%.
Last on our list is Orangeville. Coming in $150,000 below the GTA average, Orangeville’s average price in April was $938,711. There were 64 sales in April and 118 new listings, for a SNLR of 76.6%.