Analysts say Toronto Real Estate Market seeing signs of stability
According to reports on national home sales number, Analysts say Toronto Real Estate Market seeing signs of stability, the Canadian Real Estate Association pointed out an increase of 1.6% in residential transactions in Toronto.
Analysts also said that it was the “first sign of stability” in a long and overheated real estate market. “For policy makers, it’s exactly the same what they all are looking for, that’s bottom it’s falling out for housing market,” BMO Capital Markets Canadian Strategist Benjamin Reitzes told to Bloomberg in a press release.
Defying this earlier predictions by economists that pegged decline in home sales at an average of around 1.1% over a month, transactions in real estate market shrunk by 0.1% in May, this count is near to the lowest levels in last 5 years.
CREA also noted that this moderation may be indicative of new home buyers and gradual adjustment towards stricter regulatory regime and recent hike in rate of interest. Data also showed that number of home sales increased by almost half of all of the Toronto Real Estate Markets nationwide.
Barb Sukkau, CREA President wrote in a report that a stress test came into an effect this year for the home buyers with more than 20% down payment as it is continuing to suppress activity in home sales.
Despite of these all these makings of a positive trend in real estate market, however, Association is projecting decline of 11% over a year in 2018 home sales, shaving number of nationwide transactions down to 459,500.