As anticipated in our previous Toronto housing market update, the warmer weather has brought more listings available to home-buyers in Toronto.
Unfortunately, with the jump in listings, the price of homes continued to rise, up 24.5 per cent. This brings the average to $920,791 on average for all types of housing. This, all occurring as there was a 33.6 per cent increase in re-sale listings in our spring market.
In summary, more supply for the buyers, and great sale prices for sellers.
In an article by the Toronto Star, they state the following:
- Detached, semi-detached, and town houses saw a boost in new listings
- Re-sale condos on the market stayed about the same as last year, but was the only housing category with a sales growth of 7.7 per cent region-wide
- House sales dropped by 3.2 per cent year-over year in April
Currently, it is still a sellers market.
With the rise of inventory in April, which everyone was hoping for, it is likely we will continue to see a rise in May, and so on, as the weather improves. With the 16-point Fair Housing Plan implemented by the government to cool down the market, it is still too early to determine how effective it is.
As more and more houses become available, the 16-point plan may start to prove itself, however, there has been much concern on the tax on foreigners, considering researchers have discovered that foreign investment is quite low, sitting around 5%. Also, fewer than 1% of buyers had a mailing address outside of the country, most being U.S. residents.
Toronto is looking to become like Vancouver, with their monthly listings and sales continuing to drop month after month. We'll just have to wait and see as the weather gets warmer, just how well the government has handled our housing problem with their new 16-point Fair Housing Plan.
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