The local Real Estate market is showing definite signs of cooling but this may only be a temporary blip.
Listing in May increased by 43% while sales were down by 20% and while the average sale price in Toronto in May of $863,910 is up 15 percent year over year, it is down 6 percent from April.
In Toronto, the declines were:
- Detached: –26.1 per cent.
- Semi-detached: –14.1 per cent.
- Townhouse: –24.3 per cent.
- Condo: –4.3 per cent.
For the GTA, the drops were:
- Detached: –26.3 per cent.
- Semi-detached: –22.7 per cent.
- Townhouse: –18.1 per cent.
- Condo: –6.4 per cent.
This may look like a market that is starting to turn from a “Sellers” market to a “Buyers” market but don’t be fooled.
The Real Estate market still has lots fundamentals that will keep it going strong in the upcoming year. Some of these fundamentals include, low interest rates and a 30% discount on the Canadian dollar.
Many of the rules that were put in place in Ontario to slow the market down, were also put in place in Vancouver about 6 months ago. Vancouver experienced a short slow down but the market there has come back and is quite strong again.
I expect that Real Estate in Ontario will experience the same temporary slowdown then pick up again later this year. But as always, time will tell.