Cooling signs have been noticed in Toronto’s market, but for how long is it going to last? According to industry veteran, it won’t stay for long.
“The sellers still have the upper hand in the market. Our members are still up for the month of May” Dianne Usher, SVP Johnson and Daniel, a division of Royal Lepage, said to CREW. “We are forecasting we will see a two digit price rise in GTA by the end of the year.”
The cooling of Toronto’s market will have lasted not up to a year, if that proves to be the case.
Nonetheless, it remains to be seen how purchasers and vendors will react to the present reality.
Sales activity in GTA declined by 25.3% month after month in May, according to the Canadian Real Estate Association, with 10.196 as the overall amount of homes sold.
That equally marks a 20.8% year by year fall. Many fingers are pointing to the Ontario Housing plan recently put in place which involved some housing measures with the objective of cooling the market and addressing affordability, as the motive responsible for the absence of hope by the purchasers.
Meanwhile, the average price was up 14.9% year after year in May moving to $863.910.
Year after year, new enumerations moved up to 48.4 as current owners show signs to cash out.
And as industry players who have interest may be singing in a non-pessimistic tune, the main impact of the Housing plan continues to be present.
“The real consequence of the Ontario Fair Housing plan will be seen continuously. Before, some changes in the Housing policy have initially made house owners and purchasers to blow things out of proportion, which later balanced out,” as Jason Mercer, TREB’s Director of market Analysis, stated recently .
On the new enumeration front, the rise in active listings shows that house owners, after a prolonged delay, are beginning to react to the strong increase in price we have witnessed over the previous years by enumerating their houses for sale to take advantage of these equity benefits.”