Home prices continued to fall across the Toronto region in July, 2017 as purchasers stay on the sidelines, but the tempo of growth of new listings also continued to slow as more sellers decided to wait for a better time to sell.
The Toronto Real Estate Board reported the average sale price of all types of homes sold in the Greater Toronto Area was $746,218 in July, 2017, down 19 per cent from the market’s peak in April, 2017 when house sales averaged $920,791, and down 6 per cent from June’s average selling price of $793,915.
The average July, 2017 sales price was still up 5 per cent compared to July, 2016, which shows markets has not already erased the full amount of price gains recorded in late 2016 and early 2017.
The recent price decline came as the number of homes sold fell 40.4 per cent in July, 2017 compared to the same month last year, TREB mentioned. The number of detached house sales fell 47.4 per cent during the course of its month, while sale of semi-detached houses fell 38.6 per cent, townhouse sales fell 36.5 per cent and condo sales slipped 30.7 per cent.
Amid the decline in sales, the only modest sign of market improvement came from the slackening speed of growing in the number of new dwellings listed for sale, which rose 5.1 per cent in July compared to last July. New listings surged by 49 per cent in May and 16 per cent in June compared to the same months last year as many home owners rushed into the market to try to sell at the peak, leading to a glut of inventory and falling prices.
Jason Mercer, TREB director of market analysis, told home buyers still had more alternatives to choose from in July, 2017 than a year ago, and research results was reflected in falling prices. But who are able to predict this autumn if buyers return in a drove and new listings stop growing.
Mr. Zigelstein, realtor in Richmond Hill, believes August will remain quiet but there will be a significant increase in new listings in September. He predicts sellers will be more “serious” about completing a sale in the autumn, while people who are toying with the idea of selling for prices above current market levels will leave the market.
“Anybody who’s really kicking tires in the market will come off the market some time in August, and then in September we’ll start to see those serious sellers come back on,” Mr. Zigelstein said. “I think it will be substantially more than what we’re going to see in August.”
TREB told detached houses have led the region’s housing slump, especially in the suburban 905 area surrounding the City of Toronto.
Detached house prices were up only 2.4 per cent in the 905 region in July compared to a year ago, but are still up 8.5 per cent in the City of Toronto, TREB said. The number of detached houses sold in July, 2017 fell 49 per cent in the 905 part and 41.7 per cent in the City of Toronto in July, 2017.
Condo prices have held up the most since markets began its downturn in April, 2017 due to their relatively better affordability for first-time condo purchasers. TREB said the average condo sale price in the GTA was still up 23 per cent in July, 2017 compared to a year earlier, while detached and semi-detached house prices were both up about 5 per cent compared to July, 2016.
Mr. Pasalis, real estate broker, nonetheless, said he believes condo costs will likewise begin slide lower given the 30.7 per cent of the members drop in the number of condos sold in July, 2017 compared to July, 2016.
“Condo prices can only start so high while freehold (home) prices are diminishing. It doesn’t make sense — price appreciation will level off ,” he said.
The Toronto market has learnt house sales slide since the Ontario government announced a package of reforms on April 20, 2017 aimed at chilling rapid growth in home prices in the Toronto GTA region. The centerpiece of the program was a new 15 -per-cent tax on foreigners buying properties in the Toronto area.
“Clearly the year-over-year decline we experienced in July, 2017 had more to do with psychology, with would-be home purchasers on the sidelines waiting to see how market conditions evolve,” Mr. Syrianos, TREB president, said.
TREB said summertime statistics are not the best indicator of market conditions because sales typically slow significantly in July and August, and activity usually picks up in September as vendors and customers become more active. Their opinion is that potential impacts of the Ontario government reforms and rising interest rates should become clearer in the fall, TREB said.
Thinking to sell your house or Condo in Central Toronto areas and/or in downtown Toronto areas? Please call, text or email Max Seal, Broker at 647-294-1177. Please visit http://www.TorontoHomesMax.com for a FREE Home Evaluation“.
Thinking to buy a House or Condo in Central Toronto areas and/or in Downtown Toronto areas? please call or text Max Seal, Broker at 647-294-1177 to buy your dream home or Condo. I offer you a 30-min “FREE buyer’s consultation” with NO obligation.
Please visit my website http://www.centraltorontorealestate.com/ to find out available homes and Condos for sale in Central Toronto areas and/or in downtown Toronto areas.
Source: Globe And Mail
Leave a Reply