An industry veteran says the cooling in the Toronto housing market isn’t relied upon to last.
“The market still favors sellers. For the month of May our numbers are still up”, Dianne Usher, SVP Johnston & Daniel, a division of Royal LePage, told CREW. “We’re predicting we’ll see double-digit price increases by the end of the year in the GTA”.
The cooling of Toronto’s market will have kept going not as much as a year if that has all the appears to be true. All things considered, how purchasers and sellers will respond to the present reality remains to be seen.
According to the Canadian Real Estate Association, GTA sales activity fell 25.3 per cent month-over-month in May, with a total of 10196 homes sold.
That also marks a 20.8 per cent year-over-year drop. Many say the reason for buyer reluctant attitude is the recent Ontario Housing Plan, which included a number of housing measures aimed at cooling the market and addressing affordability.
Then again, the average price was up 414.9 per cent year-over-year in May, hopping to $863910.
New listings were up 48.4 year-over-year, as present owners hope to cash out.
The ultimate impact of the Housing Plan remains to be seen, even though interested industry players may be singing an optimistic tune.
“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”, Jason Mercer, TREB’s Director of Market Analysis, recently said. “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”.