A Shift In The Toronto Housing Market
Toronto’s spiraling housing market is at an outlining moment, whilst high record home costs are perhaps spilling over once again from April into May, says one Toronto real estate agent.
The standard home cost in the Greater Toronto Area reached a record high $920,791 in April, conversely there is proof that the causative factors for the increase in the market activity had shifted. This was mirrored to the fact that new listings in the market have augmented, while sales have plunged from the previous year.
In the latest statistics released by the Toronto Real Estate Board, it was underscored that for the month of May, the repercussions of the new guidelines implemented by the Ontario government were realized, with the effects likely to continue.
“This is unquestionably a defining moment for Toronto’s housing market” noted John Pasalis, president and agent at Realosophy.com, in an email.
Home prices for the month of April waned from their high record position as a result of surge in supply, which made steady the demand for homes and also ensued to a reduction in home prices.
Pasalis went on to transmit that even though he envisions home prices to increase to about 14% this year. He also expects seeing a 6% decline in the average home price.
Additionally, the sales of homes in the market are projected to experience a 19% drop on all home types in the GTA, while other home types will see more debilities in comparison to condos.
Nevertheless, it is very challenging to see much change in a matter of one month. Additionally no one at this point can predict how long this change will last.
At the moment, there are numerous elements impelling home prices, Pasalis added.
However, the preeminent thing that can occur in the market is that, home prices will certainly make a recovery. However, this can only be determined by the reaction of both buyers and sellers to the new market trend. If this is to transpire, the market will endure stability for the rest of the year.
J C Loum
