With the Spring real estate market starting off slow, May started off strong. Greater Toronto Area REALTORS® reported 7,834 sales through TREB’s MLS® System. These numbers are down by 22.2 per cent compared to last May 2017.
Its always a supply and demand issue that drives the sustainability of our resilient market. It is the supply of new homes available for sale low that is causing an issue. New listings were down by 26.2 per cent. The fact that new listings were down by more than sales in comparison to last year means that competition increased between buyers.
“Home ownership remains a sound long-term investment. Unfortunately, many home buyers are still finding it difficult find a home that meets their needs. In a recent Canadian Centre for Economic Analysis study undertaken for the Toronto Real Estate Board, it was found that many people are over-housed in Ontario, with over five million extra bedrooms. These people don’t list their homes for sale, because they feel there are no alternative housing types for them to move into. Policy makers need to focus more on the ‘missing middle’ – home types that bridge the gap between detached houses and condominium apartments,” said Mr. Syrianos.
On a seasonally adjusted basis, the average selling price was up by 1.1 per cent compared to April 2018.
“Market conditions are becoming tighter in the Greater Toronto Area and this will provide support for home prices as we move through the second half of 2018 and into 2019. There are emerging indicators pointing toward increased competition between buyers, which generally leads to stronger price growth. In the City of Toronto, for example, average selling prices were at or above average listing prices for all major home types in May,” said Jason Mercer, TREB’s Director of Market Analysis.
These stats are for the Oakville market only, if you are in another city within the GTA please send me an email at email@example.com to get your copy of your customized city’s report.
Source: Toronto Real Estate Board