Toronto housing market sees another drop
It’s more bad news for Toronto’s housing market, with new figures revealing home sales were down 39.5% year-on-year in March.
The report, released by the Toronto Real Estate Board, noted only 7,228 residential transactions last month in comparison to the previous year, which saw a record 11,954 sales. That’s a 17.6% drop compared to average March sales for the previous 10 years. The average home in the GTA was worth $784,558 last month-once again a lower figure than in 2017, when the average home was coming in at around $915,126.
This is just another blow for the housing market after findings last month showed the number of new homes being built in the city was continuing to slump. First time buyers across the GTA are reportedly faced with fewer options, as the supply of condominium apartments and single-family homes remains well below what is considered a healthy level. Furthermore, the rising cost of owning a home in the city is potentially scaring away new buyers from make the investment.
Tim Surianos, president of the real estate board, said: “The effects of the (Ontario government’s) Fair Housing Plan, the new (federally mandated mortgage) stress test and generally higher borrowing costs have prompted some buyers to put their purchasing decision on hold.” However he also predicts that home sales will be up relative to 2017 in the second half of this year. "Right now, when we are comparing home prices, we are comparing two starkly different periods of time," says Jason Mercer, TREB's director of market analysis.
This is partially the result of less than a month’s worth of of inventory last year versus two and three months this year.
"It makes sense that we haven't seen prices climb back to last year's peak. However, in the second half of the year, expect to see the annual rate of price growth improve compared to Q1, as sales increase relative to the below-average level of listings," said Mercer.