A number of changes were introduced in Ontario’s Fair Housing Plan. It was expected that there would be a huge splash in the market. Well, the latest numbers released by The Toronto Real Estate Board (TREB) have an interesting story to tell.
What you need to remember is that the changes were expected to discourage house flipping practices. The recent changes haven’t affected real estate prices in the Greater Toronto Area. However, TREB results reveal that home buyers are now enjoying more choices than ever.
The recent statistics suggest the average sale price of homes across the region have increased to $920,791. A large number of new listings also made their way into the market. Most of the new homes available belong to the low-rise category (detached and semi-detached) homes and this is a refreshing change. What’s more interesting is that the supply of houses before the changes were introduced was quite tight.
The Dip in Sales in April
Numbers by TREB suggest the overall sales in the region have dropped just a bit. It’s too early to call it a sign of a market downturn. The authorities say the recent decline in sales is caused by the Easter Holiday weekend rather than the changes made in the Fair Housing Plan.
If you take a closer look at the statistics, you will notice almost 11,000 homes changed ownership in Toronto City. The so called 905 regions also show more than 7,000 homes changing hands during the same period.
The TREB President stated that it is too soon to tell whether the recent changes are triggered by the new measures implemented by the province. The president also added that the supply of new homes should surpass the sales for many months before the housing market is balanced.
Of course, there is significant increase the new listing in April. Home buyers were able to benefit from the variety of choices that were available. But a lot of questions need to be answered at this stage. You cannot say that the increase in the new listing is only because of Canadian households reacting strongly to the rapid growth over the past year. The change according to authorities can also be a reaction to the Fair Housing Plan.
The TREB president had news for both buyers and sellers. He said it can take months to control the substantial demand for new homes that has built up. As for the annual price growth, both buyers and sellers can expect prices to remain much higher than the inflation rate. This is important especially when the real estate market enters the spring and summer season.
The bottom line is that even after the changes, the prices of detached homes in the region remain over the “million” mark. Furthermore, the changes in housing plan caused the prices of condos in the region to increase. Will the changes cause further impact? Only time will tell.