Not only are the prices of homes in the GTA falling, but even sales are down. Canada’s largest real estate board says home sales in the GTA have fallen 35 per cent year over year in February, as selling prices dropped more than 12 per cent.
The Toronto Real Estate Board reported 5,175 residential transactions through TREB’s MLS system last month, down 34.9 per cent compared to the record 7,955 sales reported in February 2017.
The number of new listings entered into TREB’s MLS system in February totalled 10,520, a 7.3 per cent increase compared to the 9,801 new listings entered during the same month last year.
However, the level of new listings remained below average for February for the previous 10 years.
The overall average selling price for February sales was down 12.4 per cent year over year to $767,818, but still 12 per cent higher than the average reported for February 2016.
When TREB released its outlook for 2018, the forecast anticipated a slow start to the year compared to the historically high sales count reported in the winter and early spring of 2017.
Ontario’s Fair Housing Plan, the new mortgage stress test guidelines and plenty of economic uncertainty in the months to come have given many prospective buyers reason to pause and re-evaluate their financial priorities.
Should you invest in that second or third home now or wait for prices to fall further, some investors ask. Prospective home buyers are also finding it harder to qualify for mortgage amounts that would have otherwise allowed them to buy the house they really want as opposed to compromising both in terms of size and location. – CINEWS