The Toronto Real Estate Board (TREB) reported a significant drop in home sales over last March – an astonishing 39.5 per cent drop. That’s because the GTA was experiencing a market frenzy; home sales and home prices were heading sky high and bidding wars were the norm.
Last March, the housing market was so alarming, the Ontario government stepped in and they introduced several measures to cool it down. Then the financial stress test came into effect on January 1st for federally regulated lenders, followed by a rise in the variable and fixed-rate mortgages.
This year, Ontarians are looking at a very different market. Even though inventory is still tight with only 14,866 new sales listings, which is 12.4 per cent lower than last March, sales are also down by 17.9 compared to the 10-year sales average.
Home prices are down from last March. The average price of a home in the GTA was down 14.2 per cent to $784,558 last month, a decrease from the average of $915,126 in the same month last year. The good news for homeowners is, due to the continuing shortage of inventory, prices are again rising. They are 2.2 per cent higher than last month (February). TREB predicted home sales will be up relative to 2017 in the second half of this year.