July 2017 Market Stats
There were 5,921 sales as reported by the TREB MLS system in July 2017 which resulted in a 40.4% decrease in the number of sales on a year-over-year basis. This decrease was led by the detached market segment – both in the City of Toronto and surrounding regions. The primary reasons being increased competition and recent market measures introduced by all three levels of government.
July 2017 had 18,751 active listings, a massive 65.3% increase from the same time last year. Furthermore, homes have been taking longer to sell with the average days on market increasing from 16 days to 21. This has led to significantly more choice for buyers who had previously been struggling to find homes that met their criteria. Additionally, all three levels of government have introduced new regulations since October 2016, in an attempt to cool Toronto's housing market. The glut of listings remaining on the market and uncertainty by many buyers has led to a 'wait and see' mentality as they try to fully comprehend the effects of these various policies on the housing market. On top of all that, July tends to be the time of the year when many buyers, especially those with children, stop their search and take a vacation, further reducing the number of active buyers in the market.
“Summer market statistics are often not the best indicators of housing market conditions. We generally see an uptick in sales following Labour Day, as a greater cross-section of would-be buyers and sellers start to consider listing and/or purchasing a home. As we move through the fall, we should start to get a better sense of the impacts of the Fair Housing Plan and higher borrowing costs,” said TREB CEO John DiMichele.
The MLS® Home Price Index (HPI) Composite Benchmark price was up by 18 per cent on a year-over-year basis. However, the Composite Benchmark was down by 4.6 per cent relative to June. Monthly MLS® HPI declines were driven more so by single-family home types. The average selling price for all home types combined was up by five per cent year-over-year to $746,218.
“Home buyers benefitted from more choice in the market this July compared to the same time last year. This was reflected in home prices and home price growth. Looking forward, if we do see some would-be home buyers move off the sidelines and back into the market without a similar increase in new listings, we could see some of this newfound choice erode. The recent changes in the sales and price trends have masked the fact that housing supply remains an issue in the GTA,” said Jason Mercer, TREB’s Director of Market Analysis
*Data and Information obtained from TREB July 2017 Market Watch
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