Balance Returns to the GTA Market; But Will It Continue?
Listings increase; sales decline; prices moderate: If it looks like a buyer’s market and feels like a buyer’s market, is it a buyer’s market?
One thing’s for sure, June 2017 results from the Toronto Real Estate Board (TREB) is offering GTA buyers a long-awaited opportunity to choose.
Year-over-year home sales declined by 37.3% to 7,974 in June 2017, and the average price of a home increased by only 6.3% over June 2016 to $793,915. Meanwhile, new listings were up by 15.9% to 19,614. As TREB points out, this signals a moderating rate of growth compared to May 2017’s increase in new listings of 48.9%.
All housing types were impacted: Sales of detached homes declined by 42.9% to 848 in 416 and 45.7% to 2,602 in 905. Condo apartment sales declined by 21.7% to 1,702 in Toronto and 27.6% to 669 in the rest of the GTA.
The average price of a detached home in 416 is now $1,386,524 (up 10.1%) and $948,099 (up 6.2%) in the 905 area. Condo prices showed the biggest increases of all home types: up 23.2% (to $552,679) in the 416 area and 21.4% (to 436,097) in 905.
According to TREB, the market is in flux, adjusting to new provincial measures introduced in April. But both buyers and sellers may want to heed poet Robert Herrick’s advice: “Gather ye rosebuds while ye may…” Because who can predict next month?
Today’s Market Can Benefit Condo Buyers and Sellers
As the GTA moves towards a buyer’s market, the question is: Will it stay or is it temporary – a breather taken while the market assesses the impact of Ontario’s Fair Housing Plan?
June figures released by the Toronto Real Estate Board (TREB) may tell the tale. Home sales are down 37.3% over June 2016 results to 7,974, and prices are growing by less; the average selling price is up by only 6.3% to $793,915.
New listings also grew by 15.9% to 19,614; TREB suggests many sellers are listing, fearing a further decline in prices.
The result: Opportunities for buyers. So why the sales decline? TREB believes buyers are postponing purchase decisions while they monitor the impact of the province’s market-cooling measures.
Interestingly, the decline in sales affected condo apartments less than other home types; 416 condo sales declined by 21.7% to 1,702 and 905 by 27.6% to 669 compared to a drop of 42.9% in detached home sales in 416 (to 848) and 45.7% in 905 (to 2,602).
On the other hand, condo prices increased by more than other home types: 416 prices increased by 23.2% (to $552,679) and 21.4% in 905 (to $436,097.)
TREB suggests that, based on its Ipsos survey: “(H) ome buying activity in the GTA will remain strong moving forward.” In this scenario, increased choice should attract fence-sitting condo buyers, and with still-rising prices, sellers may want to be there.
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