Home sales in GTA see 56 per cent drop in first two weeks of June
Rachael D'Amore, CTV News Toronto
Published Thursday, June 22, 2017 4:13PM EDT
Last Updated Thursday, June 22, 2017 6:38PM EDT
Home sales in the Greater Toronto Area plunged more than 56 per cent during the first two weeks of June, compared with a year ago, according to the latest numbers from the Toronto Real Estate Board.
From June 1 to June 14, TREB says the number of detached homes sold fell 57.7 per cent in the 905-area and 51.7 per cent in Toronto.
Condo sales also felt the sting, but not as significantly, with a 39.2 per cent drop across the GTA year-over-year.
Despite this, selling prices remain high.
The board found that, during these two weeks, prices rose 6.7 per cent for all home types combined year-over-year.
The average price of a home currently sits at $808, 847 in the region and condos at $527,749.
Detached homes saw the biggest jump to $1,071,259 in the first 14 days of June – a 7.7 per cent increase year-over-year.
But, compared to May, prices actually decreased. During that time, the average price of a detached home in the GTA was listed at $1,141,041 and condos at $531, 659.
Meanwhile, the number of new listings rose to 9,988, which represents a 22 per cent increase.
The data comes two months after the province announced 16 new measures intended to cool an overheated housing market. The measures included implementing a tax on foreign buyers and increasing rent controls on all buildings. The province also gave municipalities the right to tax vacant properties, though that has yet to be effected in Toronto.
“In my opinion, the sales are down in June because we had a backlog of clients who still needed to sell their homes and held on in April. They were waiting to see what the government was going to say with the plan announced in April the 20th,” Juliette Fergus, of Keller Williams Referred Urban Realty, told CTV News Toronto.
“So for those people, life didn’t change for them, they still needed to sell their homes.”
Fergus added it’s too hard to say whether these listings are truly new listings or ones being relisted.
“We’re seeing homes that are listed for multiple offers…. They stay on the market for a week, they don’t sell, they’re being pulled and relisted,” she said. “Homes are now being listed at what the actual price is.”
Monte Burris, also of Keller Williams Referred Urban Realty, told CP24 Thursday that the statistics speak to a more “seasonal” drop.
“We’re seeing what’s a normal, typical seasonal drop. We’re really into a summer market right now. Typically in Toronto – every year, no matter what – the best timing to buy is June, July to August but it’s also the worst time to sell. That’s because there are seasonal fluctuations in this market.”
He said the best time to sell is “almost always” April or May.
“So we’re down since April and May, but we’re actually up over last year,” he said.
TREB will release the official numbers for June at the end of the month.