The Toronto Real Estate Board recently released another set of numbers as it relates to the real estate market activity. The numbers are quite a change from what many have gotten used to expect. Lets look at some of the details.
The number of sales reported for the first 2 weeks of June 2017 through TREB’s MLS system was 2,999. That’s down 50 per cent from the same 2 week period in June 2016 which recorded 6,011 sales. Let’s also recall that sales in May 2017 slowed by just over 20 per cent over May 2016.
Prices are up compared to June 2016, with the condominium market leading the way with average 25.5 er cent increase. Average detached home price increased by 7.7 per cent. Overall, prices for all types combined and representing all of the GTA are up by 6.7 percent to $808,847.
Looking at the market overall, there are some interesting developments. There is a fairly sudden, even though not totally unexpected turn towards a more balanced market. Recent Ontario government announcements, combined with some market uncertainty, have led to this slowdown in sales and price increases. As mentioned above, sales dropped 50 per cent when compared to mid-June 2016 and have also dropped from May 2017. Pace of price increases have also slowed down in some segments but the average price as reported by TREB for June is $808,847 as compared to average $863,910 reported for May 2017. That is actually down month to month by roughly $55,000. High end home sales can quickly change the average price so I wouldn’t read too much into it at this point but we should be aware if this becomes a trend.
Is this Vancouver all over again? After government action in BC, sales dropped and price increases softened initially, only to return to higher activity levels within months. Will the same happen in the GTA? History often repeats itself but only time will tell what’s in store for the real estate market in the GTA.