Sales of Houses Fall Drastically in the Month of May

House sales nationally decreased by 6.2 percent from April to May as published by CREA. It represents the highest sales fall since the month of August 2012.
The highest sales fall was experienced in the Greater Toronto Area, where the market witnessed a 25.3 percent month over month decrease.

Activity was equally slow “significantly” in the areas around, including Hamilton, Barrie and Oakville. Andrew Peck, president of CREA said “recent developments in the housing policy in Ontario have rapidly caused sales and listings to become more stable in GTA.” Whereas, the balance between demand and supply in the city of Vancouver is tightened up, while many vicinities elsewhere in Canada stay amply supplied.
It was argued by CREA that the sales fall in Greater Golden Horseshoe Area are a prove of dwindling speculative home purchases.

CREA’s chief Economist, Gregory Klump said “this is the first full month of results since changes were made in the Ontario housing policy in late April. They made available significant justifications that the changes have led to balanced housing markets all over the Greater Golden Horseshoe region.” In the region, the housing market for the month of May, sales activity decreased most in Oakville and the GTA. This shows that changes have squelched speculative home purchases.

The average home price in Canada rose to 4.3 percent year over year last month and new home listings rose to 0.3 percent month after month.
CREA in another publication said “as sales reduced considerably in the month of May, the sale-to new listing ratio in the country moved out sellers’ territory and back  into the balanced market territory for the first time since late 2015”

In May 2017, the ratio stood at 56.3 percent down from 60.2 percent in April and an increase in 60 percent range over the first 3 months of the year.