The Toronto real estate market after a scorching hot spring, the summer has brought a cooldown to the delight of many homebuyers. Sales dropped by 34.8 per cent compared to August 2016 and amounted 6,357. The average price reached $732,292 and was still up by 3 per cent year-over-year but down from the April peak of $920,791. The number of new listings was at its lowest since 2010, it was down by 6.7 percent compared to August 2016 and amounted 11, 523. The active listings surged by 65% year-over-year.
This growth was driven by the semi-detached, townhouse and condominium apartment market segments that continued to experience high single-digit or double digit year-over-year average price increases.
The MLS® Home Price Index composite benchmark, which accounts for typical home types throughout TREB’s market area, was up by 14.3 per cent year-over-year in August. The fact that MLS® HPI growth outstripped average price growth, points to fewer high-end home sales this year compared to last.
“The relationship between sales and listings in the marketplace today suggests a balanced market. If current conditions are sustained over the coming months, we would expect to see year-over-year price growth normalize slightly above the rate of inflation. However, if some buyers move from the sidelines back into the marketplace, as TREB consumer research suggests may happen, an acceleration in price growth could result if listings remain at current levels,” said Jason Mercer, TREB’s Director of Market Analysis