Homes sales decline ‘sharply’ in May

by Justin da Rosa15 Jun 2017
The Canadian Real Estate Board releases latest round of housing market stats.

National home sales dropped 6.2% month-over-month from April to May, according to CREA. That represents the largest sales decline since August 2012.

The most drastic sales decline occurred in the Greater Toronto Area, where the market experienced a 25.3% month-over-month drop.

Activity was also down “significantly” in surrounding areas, including; Oakville, Hamilton, and Barrie.
“Recent changes to housing policy in Ontario have quickly caused sales and listings to become more balanced in the GTA,” said CREA President Andrew Peck. “Meanwhile, the balance between supply and demand in Vancouver is tightening up, while many places elsewhere in Canada remain amply supplied.”

CREA argues the sales declines in the Greater Golden Horseshoe Area are a sign of dwindling speculative home purchases.

“This is the first full month of results since changes to Ontario housing policy made in late April. They provide clear evidence that the changes have resulted in more balanced housing markets throughout the Greater Golden Horseshoe region,” said Gregory Klump, CREA’s Chief Economist. “For housing markets in the region, May sales activity was down most in the GTA and Oakville. This suggests the changes have squelched speculative home purchases.”

The national average home price increased 4.3% year-over-year last month and newly listed homes increased 0.3% month-over-month.

“With sales down considerably in May, the national sales-to-new listings ratio moved out of sellers’ territory and back into balanced market territory for the first time since late 2015,” CREA said in its release. “The ratio stood at 56.3% in May 2017, down from 60.2% in April and the high-60% range over the first three months of this year.”
 

COMMENTS

  • by Robert, Wellington Real Estate Inc. 6/15/2017 11:19:22 AM

    Inquiring minds wish to know,...... How can manipulating the natural order of commerce be a good thing? Are we in LALA LAND or is this the new order of "World Class City" economics?

  • by Don johnson 6/15/2017 11:44:05 AM

    In burlington it was obvious in feb the market had peaked - march saw prices declining on sales compared to feb and by April the trend was obvious - but it was expected the fall market encouraged panicky buying in Jan feb from buyers who would have bought in may June July - so now they have to sell - the market will come out of the sales slowdown in July when buyers have to buy if want new home for school year - also we know total sales for year will be within couple % of last 2 years unit sales so there will be a balancing out before year end - I saw this exact pattern in 1975 and 1991 - people need to realize if you have a world class city then your prices are based on world pricing - the Canadian dollar demise with continued immigration growth has fuelled the market - Wynns new civil servant salary raises and min hourly rates - plus massive deficits and capital expenditures are flooding market with new dollars which combined new taxes eg Toronto land transfer new development fee increases permit fees and now demise if the omb all clearly mean price trend will continue to rise over next 2 years - the one thing the government can not control is the true effect of law of supply and demand - demand doesn't go away if price is too high it just means people have to wait till they can afford to buy - if we don't increase amount of detached and multi bedroom family homes - prices will rise due to amount of new money floating around - god bless premier Wynn and her idiots who have no clue when it comes to financial responsibility but really don't care as long as they remain in power !

  • by Harold 6/15/2017 12:50:17 PM

    About time !

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