The average price of a Toronto home likely tumbled more than $100,000 in June from the frenzied peak prices of earlier this year, according to one Toronto realtor.
The greater Toronto housing market took a sharp turn following Ontario’s 16 new measures to rein in the region, as listings skyrocketed and sales plunged.
Average prices hit a record peak of $920,791 in April – the same month Premier Kathleen Wynne introduced the measures.
Next Thursday, the Toronto Real Estate Board will release its statistics for June.
While prices are expected to be some five per cent higher compared to June 2016, the average price should be “down around 12 to 15 per cent from the peak prices in April,” John Pasalis, president and broker at Realosophy.com, told BNN in an email.
A pullback of that size would mean the average price for June could be down some $110,000 to $138,000 from the April peak.
Before the abrupt turnaround, the greater Toronto market bore the hallmarks of an “unsustainably red-hot seller’s market,” Lauren Haw, CEO and broker of record at Zoocasa, told BNN in an email.
“While sales year-over-year are coming down, last year was an anomaly and these 2017 figures show we're potentially returning to a more sustainable market,” said Haw.
Based on Zoocasa’s observations, sales volumes could be 35 per cent lower, year over year, across all property types.
“We expect freehold sales to be down over 40 per cent and condo sales to be down more than 20 per cent compared to last June,” said Haw.
“This will feel severe versus 2016 numbers, but keep in mind 2016 had the highest year of [Toronto Real Estate Board] sales ever.”
The surge in new listings and drop in sales will see months of inventory – an important market metric – hit 3.6 months for freeholds and 2.1 months for condos, Haw added.
In March, Toronto was looking at “just three weeks of inventory.”
“We're now moving into a more balanced market.”