More Ontario homeowners sold within a year of buying as interest rates climbed, report finds
There’s been a “notable” increase in homeowners selling within one year of buying a property, particularly condos, since interest rate hikes started last year, according to a new report from land and commercial registry company Teranet.
The latest edition of Teranet’s market insight report examines the impact of eight successive interest rate increases since March 2022 on the Ontario real estate market after rates hit historic lows during the height of the pandemic.
The report found that properties held for less than a year increased to 22 per cent of all transactions in the province at the end of last year and the first quarter of 2023, which “may suggest home ownership stress for those who purchased at the peak of the housing market.” Historically, this figure sits around 15 per cent.
Emily Cheung, the director of Data, Analytics and Insights at Teranet, said the “holding period” as they call it, “has been steady Eddie for the last five to 10 years, both before the pandemic, and through the pandemic and now we’re seeing the differing trends.”
This trend was even more pronounced with condos, and in the GTA.