The housing market across the country took a giant dip in April, with Toronto getting hit the hardest, according to data from the Canadian Real Estate Association (CREA) shows.
The national average selling price fell 10.9 per cent, on a seasonally adjusted basis, to $475,310 in April from $533,504 in March. Thanks to earlier strength in the market, that’s just 1.3 per cent lower than a year ago.
Toronto saw the steepest selling price drop, with the average dropping 11.8 per cent, to $789,274 for all housing types.
That was followed by Ottawa, where prices tumbled 9.6 per cent, to $462,000. The average selling price in Vancouver fell 6.2 per cent, to an average of $1,009,570.
Falling average price numbers don’t necessarily mean sellers are slashing their asking prices. They can also reflect a change in the mix of housing that’s being sold. Recent numbers suggest high-end home sales have fallen more than others, which would drag down the average price.
Home sales were down 57.6 percent nationwide, compared to the same month a year earlier, to the lowest sales total since 1984.
The lack of new listings “reiterates that the housing market has, in unprecedented fashion, effectively shut down and closed for business.”
According to most housing experts, it will be about six months before the actual picture emerges. At this point even those who are desperate to list their homes on the market are afraid to do so as they would be forced to sell at a loss they cannot afford. Many are simply hoping for prices to hold steady while many others are hoping for a flat out miracle.