Toronto’s soaring housing market is at a “defining moment” and record high home costs are possibly maneuvering once again from April into May, says one Toronto real estate agent.
The normal home cost in the Greater Toronto Area reached a record high $920,791 in April, however there are evident that the contributing factors for the increase in the market activity had shifted. This was reflected in the fact that new listings in the market have increased whereas sales have drop from the previous year.
In a recent data released by the Toronto Real Estate Board, it was highlighted that for the month of May, the effects of the new measures taken by the Ontario government were seen with the effects expected to continue.
“This is certainly a defining moment for Toronto’s housing market” noted John Pasalis, president and agent at Realosophy.com, in an email.
Home prices for the month of April declined from their record high position as a result of increase in supply which put an ease to the demand for homes and also resulted to a decrease in home prices.
Pasalis went on to express that even though he expects home prices to increase to about 14% this year, he also anticipates seeing a 6% decline in the average home price.
Additionally, the sales of homes in the market are expected to experience a 19% decline on all home types in the GTA while other home types will see more declines in comparisons to condos.
However it is very difficult to see much change in a matter of one month and at this point, one cannot predict how long this change will last.
At the moment, there are several factors influencing home prices, Pasalis added.
However the best thing that can happen in the market is that home prices will surely make a recovery but this can only be determined by the reaction of both buyers and sellers to the new market trend and if this is to happen, the market will remain stabilized for the rest of the year.