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Thursday, June 8, 2017

Has The House Buying Frenzy in Toronto Normalized?

Cooling Toronto housing market a return to normal, say realtors

Buyers now have more choice, more time and even a little more negotiating power.
The boost in supply of re-sale homes in May is down to strong prices in the first quarter and the provincial housing policy announced in April that have prompted some owners to cash out their equity, according to TREB.
The boost in supply of re-sale homes in May is down to strong prices in the first quarter and the provincial housing policy announced in April that have prompted some owners to cash out their equity, according to TREB.  (Bernard Weil / Toronto Star File Photo)  

Excerpted from The Toronto Star









That faint hissing sound — music to the ears of Toronto home buyers — could be the air escaping the region’s housing market.
It could also be the barely concealed frustration of sellers, who listed their homes this spring expecting to attract cut-throat bids from desperate, over-extended buyers. Instead they are seeing fewer showings and fewer offers.
Toronto area home prices dipped about 7 per cent in May compared to April but remained about 15 per cent higher year over year averaging $863,910.
Even as the market has soared, there were some month-to-month price declines, said Jason Mercer, director of market analysis for the Toronto Real Estate Board (TREB), which released its month-end May statistics on Monday.
December’s average home price was $46,212 lower than November’s $776,684 but it is “somewhat unusual” in the peak spring season, he said.
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The last year-over-year price decline was 2012, said Mercer.
May’s cool down came with a 43 per cent increase in active listings.
But there’s no indication that a bubble has burst, he said. That would require some dramatic change in the economic environment — a real rise in lending rates or a shift in regional employment.

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