Summer season blamed for cooled market

Toronto’s real estate market continues to cool following Ontario’s unveiling of its fair housing plan – this is how industry stakeholders are reacting.

There is some uneasiness among some of the industry’s players, but others have remained optimistic.

"What we’re seeing in the Toronto real-estate market right now is the result of two factors. We have to take into account that we’re in the height of summer when we do traditionally see a slow-down, as well as the fact that sellers are still waiting to see what happens following the regulatory measures imposed by the government in the spring,” Zoocasa CEO Lauren Haw said in a statement. “Buyers are waiting to see what happens in the early fall, when the real estate market traditionally sees an upswing. Another consideration is the high-amount of inventory we have available - buyers are becoming pickier about the quality of units that they want.

“Good homes are selling quickly, sometimes still in multiples. The less-than-ideal properties are sitting on the market at unrealistic prices. This demonstrates a perfectly balanced market."

The Toronto Real Estate Board reported a 40.4% year-over-year drop in home sales in July.

The average price has also fallen $175,000 since April to $746,218.

Many, however, have chalked it up to seasonal decline, including TREB.

“Summer market statistics are often not the best indicators of housing market conditions,” said TREB CEO John DiMichele. “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.”

It remains to be seen if and when Toronto’s market will rebound. But for now, investors may be considering a jump into a market that has dropped to levels that seemed impossible just a few short months ago.

Others, however, may take a more cautious approach.

CREW

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