A total of 7,974 resale transactions were recorded in the GTA in June, down by 37.3% versus the 12,725 units sold in June 2016. At the same time, new listings in June totalled 19,614 – up by 15.9% compared to June 2016. This brought total active listings to “normal” supply for this time of year following a prolonged period of inventory shortage. The market is currently in a state of flux that often follows major policy announcements pointed at the housing market. On one hand, consumer surveys reveal that many households are interested in purchasing a home in the near future, but a large chunk of these would-be buyers are remaining on the sidelines waiting to see the full impact of the Ontario Fair Housing Plan. On the other hand, many existing home owners are listing their homes because they feel that price growth may have peaked. The end result has been a better supplied market and moderating annual price growth.
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% on a year-over-year basis in June. June’s average selling price for all home types in the GTA was $793,915 – representing a 6.3% increase as compared to June 2016. A much better supplied market has been a definite factor toward influencing price growth moderation. Despite the recent moderation in price growth, the overall price gain in 2017 remains highly significant. With the year now half over, the year-to-date (January thru June) average price increase for all property types in the GTA remains at an eye-popping 20.9%. Overall, the market appears to be headed back to a more balanced situation with supply returning to normal and with the expectation that the recent pause in buying activity will be short-lived, as we enter the second half of 2017.