Resale home sales in the GTA showed a substantial year-over-year decline in May, while new and active listings soared and prices increased, albeit at a slower pace. Is it a turnaround in the making? Read on …
According to Toronto Real Estate Board’s (TREB) results, 10,196 homes were sold in May 2017 – a 20.3% drop over the same period last year. The decline affected all housing types across the GTA, from detached homes (down 26.3%) to condo apartments (down 6.4%).
This happened despite the greater number of properties available: Year-over-year new listings rose by 48.9% and active listings by 42.9%, with low-rise home types benefitting most from the increased inventory.
Average prices followed the downward trend set in April 2017: Rising, but by less. The average price across the GTA in May increased by only 14.9% to $863,910; this compares to year-over-year increases of 24.5% in April and 33.2% in March.
It was double-digit price increases across the board – from 27.7% and 29% for condos in 416 and 905 respectively, to 16.6% for detached homes in Toronto (to $1,503,868) and 15% in 905 (to $1,025,893.)
As TREB suggests, it’s too early to attribute the downturn to provincial legislation designed to cool the market; May’s sales decline may be a blip.
Much depends on buyer/seller interaction: Neither sellers nor buyers are used to rising prices and high inventory levels. It just may be a game-changer.