By Tim Syrianos, TREB President
Toronto Real Estate Board Member REALTORS® released the monthly report for July’s resale housing market. The following is a summary of what you will find in the report.
The number of sales, at 5,921 transactions, was down 40.4 per cent on a year-over-year basis, while the number of new listings was up slightly at 5.1 per cent above last year’s level. The average selling price across all home types was also up by five per cent year-over-year to $746,218.
Summer market statistics are often not the best indicators of housing market conditions, and adding to this are the psychological effects from the recently introduced Ontario Fair Housing Plan, which influenced would-be buyers to sit on the sidelines until the effects of the new policy are better known. It’s expected that an uptick in sales will occur after Labour Day, as a greater number of would-be buyers and sellers are likely to enter the market and some of those who opted to sit on the sidelines jump back in as well. Recent Ipsos polling, undertaken after the Fair Housing Plan announcement, suggests that buying intentions for the next 12 months have not changed substantially from the fall.
It’s true that buyers did benefit from more choice in the market this July compared to the same time last year, and this was reflected in terms of home prices and home price growth. However, if, as predicted above, would-be home buyers move back into the market this fall and there is no subsequent increase in listing supply to match the influx of demand, we could see some of the newfound choice introduced this summer erode. In fact, recent changes in sales and price trends are masking the fact that housing supply remains an issue in the GTA marketplace.
If you have questions about the GTA housing market, talk to a Toronto Real Estate Board Professional Member REALTOR®. TREB Member REALTORS® possess the knowledge and skills that enable them to help buyers, sellers, and renters alike navigate the GTA marketplace with confidence. For updates on the real estate market, visit TREBhome.com. If commercial property is what interests you, contact a TREB Commercial Professional Member REALTOR® by visiting trebcommercial.com.