The latest Toronto real estate news reveals changing patterns. On the one hand, prices have tumbled slightly but are still 15% higher than this time one year ago. More and more home owners are listing their houses for sale on the market, with the latest figures showing a record breaking 42% increase in listings in late May. At the same time, the number of sales has dropped by over 20% and the amount of housing inventory is at almost generational lows despite the flood of new listings.
There is increasing downward pressure on prices in the market, and the average house price fell by 6% from April to May. Prices are beginning to dip because of a slowdown in sales and an increase in supply. The sales to listings ratio of Toronto housing (ratio of demand and supply) has been decreasing from record highs, this means that there are fewer sales and increasing listings on the market. The present ratio is now 39.5% as of May, which means that 39 houses were sold for every 100 new listings on the market. This is considered balanced, in that both buyers and sellers are benefitting, without one of the two groups in an over-advantageous position.
If present trends continue, prices could plateau overall or begin to increase at much more marginal levels than was previously the case. In Vancouver, a foreign buyer tax resulted in large prices declines, but those declines have been reversed and prices are now higher than ever. It would not be impossible for a similar long-term impact to occur in the Toronto market. Enhanced market balance will improve the health of the housing market and will assist those individuals who have long wanted to buy real estate and who couldn’t afford prices, were nudged out in aggressive bidding wars, or who weren’t happy with the buying options presented to them and wanted more choice.
Have you sold your home, and now can use an advance on your equity before closing day, perhaps you need money for renovations? Tembo Financial can help! Tembo offers this unique service to homeowners in Ontario and the GTA. You could receive your money in as little as 48 hours with no credit check and no appraisal* for expenses that matter to you. Don’t wait, start today!