Toronto, July 2017 - Greater Toronto Area REALTORS® reported 7,974 sales through TREB’s MLS® System in June 2017 – down by 37.3 per cent in comparison to June 2016.
The number of new residential listings entered into TREB’s MLS® System, at 19,614, was up by 15.9 per cent compared to June 2016. While this annual rate of growth was sizeable, it represented a more moderate annual rate of growth compared to May 2017, when new listings were up by 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. 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,” said Mr. Syrianos.
June’s average selling price for all home types combined for the TREB market area was $793,915, representing a 6.3 per cent increase compared to June 2016. Year-to-date through 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 certainly been a key factor influencing the moderation in price growth. However, the average selling price has also been impacted by the fact that the greatest home sales declines were for more expensive home types, most notably detached houses. This means the change in the mix of homes sold this past June compared to a year earlier has also had a substantial impact on the overall average selling price.
Annual growth rates for MLS® HPI benchmark prices have moderated over the past two months, but remain strong. The MLS® HPI composite benchmark price was up by 25.3 per cent on a year-over-year basis in June. However, on a month-over-month basis, we have seen diverging trends. Benchmark prices were down on a month-over-month basis for detached houses (-1.3 per cent), attached houses (-1.4 per cent) and townhouses (-0.04 per cent). In contrast, benchmark prices continued to climb on a monthly basis for apartments (+1.0 per cent).