The average sale price for all types of homes in the Greater Toronto Area was $863,910 in May, a drop of 6.2 per cent from $920,791 in April, according to sales data from the Toronto Real Estate Board (TREB). The price was still up 15 per cent compared with May, 2016, however, because of large price gains earlier this year.
The month-over-month price decline came as more homes were listed for sale in May, with new listings rising 19.4 per cent to 25,837 from 21,630 in April. New listings were up 49 per cent over May last year. At the same time, sales fell 12 per cent, with 10,196 homes selling in May compared with 11,630 in April. Sales were down 20 per cent from 12,790 in May last year.
Realtors say the Toronto market seems to be correcting from a huge rate of price growth earlier this year, but shows no signs of sliding into a real estate crash.
“In the first quarter, the market was not normal,” said Christopher Alexander, regional director for Ontario and Atlantic Canada at Re/Max. “We had between 6,000 and 7,000 active listings for a district of over five million people, so prices were extremely high and it was fuelled by speculation, panic and low inventory.
Now things are a bit more normal – we have lots more inventory, buyers have more to choose from, and they don’t have to compete with 10 people to buy something, which is really nice because it gives them some breathing room.
Continue to read on.The Global and Mail