The market of Toronto seems to be leaning to a cooler period, however one can’t figure out how long it will last, an industry veteran however thinks it won’t be for long.
A division of Royal LePage, SVP Johnston & Daniel’s Dianne Usher said to CREW; “The market still favors sellers. For the month of May our numbers are still up. We’re predicting we’ll see double-digit price increases by the end of the year in the GTA.”
If that should happen, the Toronto’s market cooling down will continue for less than a year. Nonetheless, it continues to show the reactions of buyers and sellers to what’s going on. During last month, Canadian Real Association revealed that about 10,196 homes were sold, with GTA sales activity decreased by 25.3% month-over-month.
This marked a year-over-year drop of 20.8%. A number of people are blaming the recent Ontario Housing Plan, which involved a number of housing measures meant to have the market regulated and deal with the issue of affordability, which is why buyers are being cynical.
In May, the benchmark price went up by 14.9 per cent soaring to $863,910. As current owner plan to cash out, current listings increased by 48.4 per year-over-year. The future of the Housing Plan is still indefinite as potential industry players may be seeing some good news.
Director of Market Analysis, Jason Mercer recently said; “The actual, or normalized, effect of the Ontario Fair Housing Plan remains to be seen. In the past, some housing policy changes have initially led to an overreaction on the part of homeowners and buyers, which later balanced out. On the listings front, the increase in active listings suggests that homeowners, after a protracted delay, are starting to react to the strong price growth we’ve experienced over the past year by listing their home for sale to take advantage of these equity gains.”