During the first weeks of June home sales and prices were on a decline and these real agents warnings will not change anytime soon. Home sales in the GTA slumped by 56.2% with the largest drop recorded in detached homes and in the 905-area communities across Toronto.
The figures released for the first few weeks of the months indicated that this trend will most likely be the same for the end of the month as well.
In the first half of June, the average home sale price dropped to $808,847 which was down about $57,000 from May.
According to the Toronto Real Estate Board, despite the drop in sales, home prices were 6.7% higher.
Data from the TREB indicated a 56.25 drop in sales from June 1 to June 14 with the largest drop seen in detached homes.
Although condo home prices also went through a decline, it was however not as sharp as the drop in detached homes with a 39.2% decline and a 25.5% year-over-year pricing value. In the first weeks of June, the average home price was $527,749 and was $3,910 less than the figure recorded in May.
However these figures according to the TREB are yet to be approved and so all comments by the board are reserved for now.
But according to real estate agents, there will not be much difference after a breakdown has been made by the municipality.
Traditionally, home sales by the end of June are always down even though it is the busiest time for dealings to be concluded says Royal LePage Your Community agent Shawn Zigelstein, who is a specialist in the York Region market. The market according to Zigelstein has also seen a drop in sales while supply is higher.
He went on to add that the decline in the market was much expected and as predicted, there was an increase in new listings.
This year, the market is going to be different from the previous year as sellers will be more willing to put their homes in the market to take advantage of the market situation but the difference from the previous year is the fact that sellers are not so desperate this time round.
There was a 33% increase in home prices for the month of March and for real estate agents, the market has already begun to cool prior to the introduction of the new measures introduced by the government.