The CREA has stated that the GTA has had the biggest drop in sales in June, and Toronto has now fully moved from sellers' territory (ratio above 60 per cent) to buyers' territory (ratio under 40 per cent).
Patterns of sellers facing difficulties offloading properties as buyers sat around hoping for prices to come down, may have led the change. Sales-to-listings ratios are also a benchmark that is utilized to determine the territory, which the following can be identified:
- Balanced: 50 per cent (5 homes are sold for every 10 that come on the market)
- Sellers': 60 per cent plus
- Buyers': 40 per cent and below
This is a significant change in Toronto's market. If you take a look at the ratio in March, that stood at 86 per cent.
Considering the effort put in by the government to assist in cooling down the hot Toronto market, it seems to now be taking some effect. Not only has it changed the way people are now looking at the housing market, but they are beginning to deter buyers from snatching up every single property within Toronto, due to the new initiatives in place.
This drop is the largest monthly decline since 2010. Homes priced at $1.5 million and above have seen very little action, with low attendance to open houses, and being on the market for weeks rather than just a weekend.
It will be interesting to see if the decline will continue, or if the current market trend and prices will stay stagnant into 2018.
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