GTA home sales were down 22.2% last month compared to May 2017, according to the latest report from the Toronto Real Estate Board (TREB).
The report states that the supply of homes available for sale continued to be an issue, as new listings were down by 26.2%. With new listings being down by more than sales in comparison to last year, TREB reports that means competition increased between buyers.
“Homeownership remains a sound long-term investment. Unfortunately, many home buyers are still finding it difficult find a home that meets their needs,” said Tim Syrianos, TREB President.
Syrianos said in a recent Canadian Centre for Economic Analysis study undertaken for TREB, it was found that many people are over-housed in Ontario, with over five million extra bedrooms.
“These people don’t list their homes for sale, because they feel there are no alternative housing types for them to move into. Policymakers need to focus more on the ‘missing middle’ – home types that bridge the gap between detached houses and condominium apartments,” said Syrianos.
As for costs, the average selling price for all home types combined was down by 6.6% to $805,320. In Toronto proper, the average selling price in May was $861,970, compared to $899,980 this time last year.
“Market conditions are becoming tighter in the Greater Toronto Area and this will provide support for home prices as we move through the second half of 2018 and into 2019,” said Jason Mercer, TREB’s Director of Market Analysis.
“There are emerging indicators pointing toward increased competition between buyers, which generally leads to stronger price growth. In the City of Toronto, for example, average selling prices were at or above average listing prices for all major home types in May.”
With the election coming up in two days, TREB found that 25% of GTA residents rank housing affordability in their top two most important issues for the Ontario election campaign.
“Housing and real estate issues are top of mind for many Ontario and GTA voters, and they often turn to their realtors for opinions on these matters. That’s why we think it’s important to help shine the spotlight on these issues during the provincial election campaign,” said Syrianos.