GTA Home Prices - May 2017

GTA home sales dip 20% in May, while prices remain high

In Canada by TheRedPin7 Comments

GTA Home Prices - May 2017

While the month of May is historically one of the housing market’s busiest times of the year, new figures from the Toronto Real Estate Board (TREB) indicate that trend did not hold as true in 2017.

Sales for all home types across the Greater Toronto Area (GTA) dipped substantially in May, down 20.3 per cent from the same time last year. Detached homes saw the biggest drop in year-over-year transactions, down 26.3 per cent, whereas the condo market faced a more modest 4.3 per cent fall.

Despite the decline in sales activity, TREB did report the average price of all home types last month was up $111,810 (or 14.8 per cent) when compared with a year earlier. However, after isolating 2017, May did not perform as strongly on the pricing front, experiencing a $56,881 month-to-month dip from April alone.

GTA Home Prices – May 2017

TREB Monthly Real estate Prices - May 2017

Following in April’s footsteps, May did see a significant double-digit jump in the number of homes for sale, which spelt good news for buyers who had a far bigger selection of properties while on the house hunt. In hard numbers, active listings were up 42 per cent year-over-year.

“Home buyers definitely benefitted from a better-supplied market in May, both in comparison to the same time last year and to the first four months of 2017,” said TREB President Larry Cerqua in an official statement. “It is too early to tell whether the increase in new listings was simply due to households reacting to the strong double-digit price growth – or if some of the increase was also a reaction to the Ontario government’s recently announced Fair Housing Plan.”

Regardless of the jump in properties on the market, Cerqua did stress that “inventory levels remain low” as a whole, pointing to the fact months of inventory still hovered below two months in May. Months of inventory (MOI) is a metric that measures how long it would take for all currently selling properties to get snatched up by buyers if no new homes were put for sale. Traditionally, if MOI is below four, conditions are recognized as those of a seller’s market.

In terms of which areas saw the most substantial dip in activity, TREB numbers clearly point to the York Region. The regional municipality, which encompasses popular home buying destinations like Richmond Hill, Vaughan, and Markham, saw sales plunge 42 per cent. Durham, one of the GTA’s more affordable areas, saw only a nine per cent decrease in comparison.

Between the month-to-month drop in prices, the decrease in sales activity and increased listing supply, several industry insiders are signalling this may be the ideal window of time for prospective buyers who were previously turned off by the frenzied market to start viewing properties again.

Comments

  1. Martha

    My husband and I came from the US to Toronto intending to buy a condo. We have been spending between 2-5 months here during the summer since 2011, and planned to spend $1m on a place of our own to live in for half of each year. Unfortunately, the foreign buyers tax has probably priced us out of the market. We are heartbroken that we won’t be able to buy a comfortable place in our favorite city.

    1. Ajay

      Hi Martha. The foreign buyers tax is non sense and just another tax grab by corrupt run away govts found in Ontario and all over North America and all over the world. Sorry to hear about your experience. Thanks for making Toronto your destination of choice we the people welcome all visitors and immigrants to our city.

    2. Author
      TheRedPin

      Hi Martha,

      We’re sincerely sorry to hear the foreign buyer tax has proven to be a roadblock in your housing journey. It’s worth noting, under certain circumstances, you can be reimbursed for the tax. For example, anyone who obtains permanent residency or citizenship within four years of purchasing their property will receive a full rebate.

      Best,

      TheRedPin

    3. Don J Dump

      That’s too bad. Hopefully once things get under control for those of us who’ve paid taxes in Canada our lives, you will find something that fits you needs as a foreigner.

  2. Keith

    We feel exactly the same because we cannot afford a comfortable condo in Fort Lauderdale due to the unreasonable exchange rate. Harsh realities we must all bear.

  3. Rachel

    Just think how much more “heartbroken” the majority of Canadians who work and live in Toronto are, because they can’t afford a home (“comfortable” or otherwise), let alone a million dollar vacation property.

  4. danny

    1 mill for a vac property must be nice when the average Joe here is lucky to survive the high cost of exorbitant living just for groceries and the basics to life

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