Canada's Condominium Magazine
Contrasting a sharp increase of 89 percent in last period for new condo sales — our report here>> — the resales market appeared to continue to react negatively to Ontario’s Fair Housing Plan, sharply down 40.4 percent, year over year for July sales.
TREB CEO John DiMichele cautioned: “Summer market statistics are often not the best indicators of housing market conditions. 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. 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.”
In total, 5,921 residences were sold in July, traditionally a slow month. Last July, of course, the market was hyper active. The numbers for July 2017 are comparable to January 2017 at 5,157.
Total Sales for 2017
To date, total resales via TREB amount from January to July amount to:
- 60,620 in 2017
- 69,942 in 2016
Psychological reaction to new rules?
A combination of summer slowness, with wait and see psychology may be contributing factors, according to TREB. TREB President Tim Syrianos said:
“A recent release from the Ontario government confirmed TREB’s own research which found that foreign buyers represented a small proportion of overall home buying activity in the GTA. Clearly, the year-over-year decline we experienced in July had more to do with psychology, with would-be home buyers on the sidelines waiting to see how market conditions evolve.”
Sales by major home type
Detached homes, as expected, saw the highest drops year-over-year of 41.7 percent in the 416 versus condo apartments at 28.3 percent down. Condos saw the highest increase in pricing, up 24.6 percent in the 416 versus 8.5 percent for detached homes:
MLS Home Price Index Composite Benchmark up 18%
Although sales are down, prices continue to trend up, probably due to low supply/inventory. The MLS Home Index Price Index Composite soared by 18 percent over last July, although it’s down 4.6 percent over June of this year.
Condominium apartments, on the other hand, were up 24.6 percent in the 416, versus 8.5 percent for detached, indicative of the relative affordability of condos. Condominiums are currently trending upwards as compared to detached homes on new home sales, resales and also pricing.