The big or new story with this market is the Shrinking sales numbers - lower sales have been recorded every month since March.
Starting in the first two weeks of April, sales on TREB averaged 435 per day. The last half of April the daily number was 345. In May we waveraged 329 sales per day and with the mid-month report for June, we ae at 214 sales per day.
Historically, May and June are the biggest sales months of the year. For 2017, our biggest month has been March.
So why have sales Dropped? It began with prices skyrocketing by 30% att he start of the year. Buyer couldn't wait to throw mony at average properties because there was little to choose from. Everyone knew this price explosion would not last long. It was just a matter of time, and that time came at the end of March and the first week of April.
Governments and media kept claiming a major price correction was coming. At the same time, we had no listing inventory. Today listing inventory is normal. In Today's market, seller are still asking for April prices and buyers want a 20% price reduction This expectations gaap produced significantly lower sales,
Which side will cave first?
On the seller Side, we see more cancellations with plans to come back next year. (Sellers don't have to sell now unless they get their price - mortgage arrears are at an all time low) Buyers are waiting for a major correction - it will not come and they will be back in the market in a matter of months. The long-term growth fundamentals for Toronto tell us that.
Cetain market areas and property types are still selling well. These are prime properties where buyers are looking long term and are confortable in paying today's prices. One area of strength has been the downtown condo market. In May sales on TREB were down 20% while downtown condo sales were only 3% lower than the same month last year.
In Humber Bay Shores, condo sales this year in May were the same as last year.
Our advice to Buyers: Use the market pause to spend more time to find and buy the perfect property for you. For Sellers: take ta little less to sell now or be prepared to wait until next year.
From Jaime Johnston Broker of Record
Owner Remax Condos Plus