Photo: James Bombales
“Never before have so many homes changed hands across the Greater Toronto Area in the month of July,” read the first line of our coverage of the monthly Toronto Real Estate Board (TREB) data released for July 2016.
That was then, this is now.
According to data released today by TREB, GTA home sales in July 2017 came plummeting back to Earth, down 40.4 per cent compared to the same period a year earlier. Meantime, new listings climbed again on a year-over-year basis, though July’s percentage increase, at 5.1 per cent, was significantly lower than the 15.9 per cent increase observed in June.
In a media release accompanying the data, TREB pointed to homebuyer psychology and the unreliable nature of summer market statistics as reasons for the steep decline, which continued a trend of year-over-year drops that began in April of this year and accelerated in May and June.
“We generally see an uptick in sales following Labour Day, as a greater cross-section of would-be buyers and sellers start to consider listing and/or purchasing a home,” says TREB CEO John DiMichele, in a statement. “As we move through the fall, we should start to get a better sense of the impacts of the Fair Housing Plan and higher borrowing costs.”
Not everyone in Toronto’s real estate community is convinced that the expected post-Labour Day boost in activity will come to fruition this year.
In a recent episode of BuzzBuzzNews’ weekly Facebook Live broadcast, 15-year Toronto market veteran Chris Borkowski, a broker with Re/Max Hallmark, said he believes market conditions are going to be even more buyer friendly following the September long weekend.
“The only advice I hear every agent giving their client right now is, ‘Wait ‘til September,” he says. “I think come… the day the long weekend’s over, you’re going to see eight million listings… I believe there’s going to be a few weeks of smokin’ deals for buyers.”
Either way, it remains an interesting time to be a housing market observer in Toronto. Here are 9 more key statistics that came from TREB’s market data release for July 2017: