The June numbers are in and the real estate market continues to provide buyers with ample choice. The Toronto Real Estate Board reported an increase of 15.9% (19,614) in new listings and an increase of 59.6% (19,680) in active listings during the month of June. While the increase in new listings is significant, it is moderate compared to the 48.9% (year-over-year) increase that May received.
With all this choice, buyers continue to sit on the sidelines and wait to see the real impact of the Ontario Fair Housing Plan. “We are in a period of flux that often follows major government policy announcements pointed at the housing market,” said Tim Syrianos, President of TREB.
Greater Toronto Area REALTORS® reported 7,974 sales through TREB’s MLS® System in June 2017 – which is down by 37.3% in comparison to June 2016. Although this is true, numbers can be exaggerated when coming off record lows from previous years. When comparing with the previous month, we see that sales were down by 22%.
The average price for all types of homes in the GTA was down by 8% to $793,915, when compared to May 2017 where the average price was $863,910. A silver lining to all this is that the average selling price of all home types continues to be higher year over year. During the month of June, the average price for all homes was $793,915, a 6.3% increase over June 2016.
As the number of listings continues to increase we begin to get ever closer to a more balanced market. Certain communities are already seeing balanced market conditions. Within the Communities of Markham and Stouffville, detached homes now have 5.1 and 5.3 months of inventory respectively. These markets are now considered balanced.
What Does This All Mean?
With buyers continuing to wait along the sidelines and existing home owners deciding to list their homes because they believe the price growth may have peaked. The end result is a better-supplied market and moderating annual pace of growth. However, the better properties continue to sell and if buyers continue to wait they could miss out on a great deal. Looming in the background is the Bank of Canada’s decision on interest rates. A decision is set to be made on July 12, where it is expected that interest rates will rise. This increase could have another “cooling” effect on the market and limit the overall buyer pool once again.