According to a new report by Central 1 Credit Union, Economist Edgard Naverrete says Ontario housing market remains a strong seller’s market but there is only one month of supply available in May.
This is dramatic shift when compared to a year ago when there was 2.7 months of supply available.
“The resale homes market continued to moderate in May with sales sliding an additional 7.4 percent month-over-month to 22,456; this in addition to the 17.4 percent slide posted in April. New listings have also turned a corner downward with an additional 8.5 percent fewer new listings month-over-month in addition to the 10.9 percent contraction in April. With a slightly larger contraction to new listings relative to the pull-back in sales the sales-to-new-listings ratio remained high coming in at 75.0 percent in May up from 74.2 percent in April. A sales to-new-listingsratio reading above 60 percent suggests a market is in sellers’ market territory,” says Naverrete.
The report also noted that with the province relaxing on COVID-19 restrictions and opening up of businesses, this may entice sellers to list properties.
“Only increased new home building to meet demand or a significant retraction of demand may help rebalance the market in the long run,” says Naverrete.