Are GTA Home Sales Nearing a Tipping Point?

The usual spring surge in the Greater Toronto Area (GTA) housing market has not materialized this year, with measures of market performance peaking from January to March before dipping in April and early May. The cooling of the market is attributed to higher interest rates and an increase in listings. Studio and one-bedroom condos are holding their value fairly well, but freehold homes are likely to experience a more significant dip than other types of properties. While it is uncertain whether the market has reached a tipping point, sellers may want to get ahead of any market-softening prime rate hikes by the Bank of Canada. House-hunters are unlikely to disappear entirely, and housing demand may heat up again once there is more clarity in the market about the current economic and political environment.