The ride could soon be slowing.
Toronto’s often ridiculous real estate market could finally be startling to cool, according to several agents and Toronto Regional Real Estate Board (TRREB) sales data, as first reported by Storeys.
While the demand for houses has returned to pre-pandemic levels, housing stock remains low, resulting in surging home prices. The result of this is buyer frustration, fatigue and many people being entirely priced out of the Toronto housing market.
As a result, the cost of homes in Toronto has dropped for the second straight month in May, with both buyers and sellers pulling out of the city’s hot housing market.
Data provided by the Toronto Regional Real Estate Board (TRREB) indicates that 11,951 homes were resold in Toronto last month, a number above the 10 year average but lower than April and March’s 23.6 percent. However, the average selling price of a home in Toronto remained at a record high of $1,108,453.
That said, May’s sales were still double year-over-year. It’s also worth noting that May is typically the strongest sales month for houses in the city, though 2021 pulled away from this trend with March’s 15,646 reported sales taking home top honours.
Storeys also cites several real estate agents and brokers as stating that they’ve anecdotally noticed that the market is shifting, including fewer offers from buyers and offer dates listed with prices below market value. Sellers are also feeling uncertainty when it comes to listing.
On the plus side, the report also mentions that Toronto’s struggling condo market is starting to rebound, with sales increasing significantly as the city begins to re-open.