Home Prices Dip Slightly but Tight Supply Keeps Costs Up
The average price of a house last month was $863,910 – $111,810 higher than last May when homes and condos averaged $752,100 — according to month-end figures published on Monday by the Toronto Real Estate Board (TREB).
Larry Cerqua, president of the Toronto Real Estate Board said “House buyers obviously gained from a better supplied market in May, both in comparison to the same time last year and to the first four months of 2017.”
Home prices in the Toronto region fell slightly from April to May — down $55,604 on average — but were still 15% more than that of May 2016, as the supply of resale homes and condo listings increased to 43% year after year. That is a 29% benefit on the board’s benchmark price index.
The benchmark figures take into consideration houses of similar characteristics like age, location, and size of the property. The real estate industry considers it a more accurate gauge because it isn’t skewed by a specific housing category or price range.
Real estate board president Larry Cerqua, said Consumers may feel spoiled for choice given the rise over the historic low amount of listings lately, but prices remain strong due to the fact that supply is still relatively tight.
Cerqua in a press release, said “However, even with the robust rise in active listings, inventory levels stay low. This is why we can’t stop seeing very strong yearly rates of price growth, albeit lower than the peak growth rates earlier this year.”
In May, there were 18,477 listings compared with 12,931 in the comparable month last year. There were 1,611 more houses on the market in Toronto alone than in April, although the two months are typically considered among the busiest for listings.
It should be noted this is the third month in a roll that listings have risen, although May saw a significantly higher amount of houses getting in the market.
