Home Prices in Toronto creep higher with mired in sales
Home Prices in Toronto creep higher with mired in sales in May as home buyers competed for the very few new listings that amid worst home sales slump in a decade.
Home sales dropped by 22% to 7,834 as compared to the same month last year, according to The Toronto Real Estate Board. Seasonal transactions fell down for the 5th straight month to the lowest level since year 2009.
Condo or Home Sellers are holding back to see if things are improving and leading to the stiffer competition and strained supply between home buyers, the board said.
New home listing dropped by 26% to 19,022, as compared with May of year 2017. Even properties took around 20 days on an average to sell out, it is twice as long as 11 days earlier a year.
Jason Mercer, Director of market analysis at TREB said that condition of Canadian Real Estate Market is becoming tighter in Greater Toronto Area and it will give support for home prices as they move through the 2nd half of the year 2018 and 2019.
Biggest real estate market of Canada has been cooling down since April 2017, when Canadian government laid down new rules that aimed at the limiting speculation and reining in runaway home prices. Home sales for costly detached homes, remain stunted as Canadian Real Estate Market enters into busy season, from April to July.
But still, home prices are touching higher. Benchmark, a weighted home price that accounts for different types of homes, climbed by 0.8% in May from prior a month to C$772,400. Condo apartment led gains, by jumping 8.3% to C$501,000 in this year i.e 2018. On the other hand, cost of detached homes dropped by 10% from May 2017 to around C$934,100.
Average home price fell down by 6.6% over this period to C$805,320.
In Vancouver, home sales fell down by 35% from May, 2017 while home prices are moving in opposite direction. Benchmark of home prices will jump by 12% to C$1,094,000, led by housing segments, The Real Estate Board of Greater Vancouver said on Monday.