Home prices and sales in Toronto get down from a year ago
TORONTO — Toronto real estate market appears to be stabilize after frenzied pace of skyrocketing prices and sales done in last year, but transactions still have sunk down to their lowest level since year 2009.
Toronto Real Estate Board revealed on Thursday that real estate market saw around 7,792 transactions in April, with 32.1% drop from same period of time during last year when 11,468 homes were sold out and a decrease of 1.6% from a month before.
Average home price has fallen down by 12.4% as comparative to the last year and 0.2% from March to reach at $804,584 in April.
TREB described monthly changes as “minimal” and mentioned sales trends have been “flattened out” from a steeper drop-off which was seen in January & February, it is an indication that market may be climbing slowly out of a sluggish state as it was in at starting of the year and correcting the conditions which pushed up mortgage regulators and province to introduce cooling measures during last year.
Sales Activity now dropped off in opening months of year after cooling pressure at federal level, that includes financial stress test for home buyers which was implemented on Jan. 1 for regulated lenders and increases in both fixed and variable-rate mortgage as a result of moves by Bank of Canada and fluctuations in bond real estate markets.
Tim Syrianos, President at TREB said that average selling prices haven’t climbed back to a recorded peak of last year, price level of April represents a very substantial gain over the last decade.
Tim also said that home price index of MLS composite benchmark, that strips out impact of changes in mix of home sales in Toronto, home sale was down by 5.2% as compared to a year ago and number of new listings during April that have been plunged to 16,273, a 24.6% decrease from 21,571 listings that have been seen during last year at the same period of time.