In June 2017, Greater Toronto Area realtors reported 7,974 home sales through the Toronto Real Estate Board (TREB)’s MLS System, a drop of 37.3 per cent compared to June 2016 levels.
The number of new residential listings entered into TREB’s MLS System decelerated to 15.9 per cent year-over-year to 19,614. Although this annual rate of growth is significant, it represents a more moderate level of growth compared to May 2017, when new listings climbed 48.9 per cent year-over-year.
“We are in a period of flux that often follows major government policy announcements pointed at the housing market,” said Tim Syrianos, new TREB president, in a press release. “On one hand, consumer survey results tell us many households are very interested in purchasing a home in the near future, but some of these would-be buyers seem to be temporarily on the sidelines waiting to see the real impact of the Ontario Fair Housing plan. On the other hand, we have existing home owners who are listing their home because they feel price growth may have peaked. The end result has been a better supplied market and a moderating annual pace of price growth.”
In June, the average selling price for all home types in the GTA was $793,915, a 6.3 per cent increase compared to June 2016. During the first six months of 2017, the average selling price was up by 20.9 per cent to $870,016. A better supplied market has helped influence the moderation in price growth. However, the average selling price has also been impacted by the fact that the most sizable home sale declines were seen for more expensive home types, especially detached houses. This means the change in the mix of homes sold in June 2017 compared to one year earlier has also had a substantial impact on the overall average selling price.
Annual growth rates for MLS HPI benchmark prices have eased over the past two months, yet they remain strong. The MLS HPI composite benchmark price climbed 25.3 per cent year-over-year in June 2017. However, on a month-over-month basis, benchmark prices fell for detached homes (-1.3 per cent), attached houses (-1.4 per cent) and townhomes (-0.04 per cent). Meanwhile, benchmark prices continued to climb on a monthly basis for apartments (1 per cent).