Property house sales in the Greater Toronto Area are moving down 26% year after year for the past 30 days following last month’s enactment of the Fair Housing Plan in Toronto, according to data gathered by John Pasalis, president of Realosophy Realty, a brokerage based in Toronto.
“Yes it is a cause for a little worry, it is a noteworthy tumble especially given the fact that it is not proportionate across the GTA. Some areas are getting hit harder than others,” Pasalis explained to CREW sister publication, mortgageBrokerNews.ca.
Freehold house sales were low in 10 out of 12 markets where studies were carried on.The cooling of the market according to Pasalis is not a cause for concern. He said it was required, it is the rate at which it appears to be cooling.
“You can imagine how stressful it can be for those sellers who need to sell their houses. The most unfriendly situation is when they are unable to sell it or what if they are unable to sell it at a price they would have wanted to, so as to buy the next ones?” he said. “You have to think of these people, they bought a house assuming that they would sell it at a certain price and that price was based on April or march 2017 figures. In addition, if they are getting 10% less at present as a result of so many inventories and there are more purchasers, even if they buy it, affording the next one might be next to impossible.”
Vis-à-vis the reason behind Toronto’s real estate cooling, Pasalis says it is typically as a result of public discernment as contrasting to the actual policies including a 15% purchaser tax.
“It unquestionably may have predisposed people to start thinking about the market and also getting apprehensive about it, nonetheless I’m not sure the policies in and of themselves cooled the demand,” he stated.
J C Loum