Toronto’s scorching real estate market is at a “turning point” and record high home prices may have actually pulled back from April into May, says one Toronto realtor.
The average home price in the Greater Toronto Area hit a record high $920,791 in April, but signs were already emerging that market dynamics had shifted. New listings spiked while sales volumes slipped compared to the same period in 2016.
On Monday, the Toronto Real Estate Board will release its May sales statistics – the first full-month read of the market following Ontario’s 16 new measures to cool housing. The reversal trend is expected to intensify.
“This is definitely a turning point for Toronto’s real estate market,” John Pasalis, president and broker at Realosophy.com, told BNN in an email.
“New listings are up significantly and demand is cooling, which is what caused prices to fall from their April peaks.”
While he sees prices up around 14 per cent year over year, Pasalis anticipates a monthly price pullback of some six per cent from April’s frenzied peak.
Sales volumes, he adds, will be down about 19 per cent across all property types in the GTA, with the decline among freehold homes more pronounced than condos.
One month does not a trend make, and Pasalis says it is “difficult to say how long it will last.”
“Forces are working against house prices right now,” he said.
“In the best case scenario, the market will rebound in the fall – but depending on how buyers and sellers react to changes in the market we could see a cooler market for the rest of 2017."