Spring real estate is usually robust. The nicer weather brings out buyers and sales numbers usually rise with the temperatures. But not this spring. Take a look at the following stats:
In the GTA sales dropped for every type of housing.
- Detached: –26.3 per cent.
- Semi-detached: –22.7 per cent.
- Townhouse: –18.1 per cent.
- Condo: –6.4 per cent.
The number of new listings in May 2017 is 42.9% higher than May 2016. This means there are more homes on the market with fewer buyers. And the reason why is that buyers may feel like the market has peaked and are waiting for lower prices in the future. This is coupled with sellers that are trying to get a high selling price for their home.
This is reflected in the drop of housing prices from an average of $919,614 in April to $863,910 in May. That’s more than $55,000, or around 6%.
The price drop is significant. It is the first time average housing prices have dropped in a long time. It is still too early to tie these numbers DIRECTLY to the Government’s Ontario Fair Housing Plan. But there is a very strong correlation.
If you’re looking to buy or sell real estate, make sure you talk to real estate professionals, like the Loretta Phinney Team, that have the expertise and knowledge to help you navigate the current market dynamics.
Photo Courtesy of Geralt