Toronto region home prices dipped slightly from April to May — down $55,604 on average — but were still 15 per cent higher than May 2016, as the supply of resale house and condo listings rose 43 per cent of the same time over year.
The average house price last month was $863,910 — $111,810 more than last May, 2016 when the homes and condos averaged $752,100 — according to month-end statistics from the Toronto Real Estate Board( TREB) being released.
That is a 29 per-cent gain on the board’s benchmark price index.
The benchmark figure takes into account homes of similar characteristics such as sizing, site and the age of the property. The real estate industry considers it a more accurate ascertain because it isn’t skewed by a particular house category or cost range.
Consumers may have more choices for selection in view of the increase over the historical low number of listings lately, but prices remain strong because supply is still relatively tight, told real estate committee President Larry Cerqua.
“Homebuyers definitely benefited from a better-supplied marketplace in May, 2017 both in comparison to the same period last year and to the first four months of 2017 ,” he said.
“However, even with the robust increase in active listings, inventory remain low. At the end of May, 2017, we had less than two months of inventory. This is why we continued to see very strong annual rates of price growth, albeit lower than the pinnacle growth rates earlier this year,” Cerqua said..
There were 18,477 listings in May, 2017 compared with 12,931 in the comparable month last year. In Toronto alone, there were 1,611 more homes on the market than in April, although both months are typically considered among the busiest for listings.
It is the third consecutive month that listings have increased, although May, 2017 read a significantly higher number of homes reaching the market.
It’s not clear how much of the change reflects the results of the province’s housing policy bulletin on April 20, 2017 designed to cool the Toronto area’s overactive dwelling costs, TREB officials said.
In Vancouver, where market cooling measures were introduced last-place summer, house sales returned to near-record levels in May, 2017 after several chilly months. Home sales rose 22.8 per cent in comparison with the previous month and 23.7 per cent of the numbers above the 10 -year median for May. The benchmark price there was up nearly 9 per cent from May 2016.
“We appreciated growth in the first four months (of 2017) that would typically take a full year ,” he said
Historically, sellers would look at springtime as a great opportunity to sell and the province’s April, 2017 announcement was well timed and likely forced some sellers into listing, he said.
The province’s cooling plan, including a foreign buyer’s tax and expanded lease controls, started an effect.
” Whether or not something’s actually changing, you end up with people talking about it and things are going to change ,” he said.
TREB numbers found the boost in home choices didn’t increase the number of transactions in the Toronto region in May, 2017. Listingsof detached houses were down about 26 per cent in the town and across the region. Condo listings likewise fell 6.4 per cent of the members time over time in May.
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Source: Toronto Star
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