According to statistics recently released by the Canadian Real Estate Association (CREA), national home sales posted a sizeable decline in May 2017. While May sales were down from the previous month in about half of all local markets, the sizeable national decline largely reflects a 25.3% month over month drop in the Greater Toronto Area (GTA). Activity was also down significantly from the previous month among other housing markets across the Greater Golden Horseshoe region, including Oakville-Milton, Hamilton-Burlington 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. All real estate is local, and REALTORS® remain your best source for information about sales and listings where you live or might like to."
"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 number of newly listed homes edged up a further 0.3% in May following April's jump of almost 10%. New listings in May remained high in and around the GTA; however, the York Region of the GTA posted the largest month-over-month decline in new supply. Similar percentage declines were also evident for new listings in Oakville-Milton and Barrie.
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. 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.
With new listings having surged and sales having declined in some markets within the Greater Golden Horseshoe, the number of months of inventory in the region is up from all-time lows. That said, housing markets in the region remain among the tightest in Canada, with most urban centres in the region still registering less than two months of inventory.
The actual (not seasonally adjusted) national average price for homes sold in May 2017 was $530,304, up 4.3% from where it stood one year earlier.
The national average price continues to be pulled upward by sales activity in Greater Vancouver and Greater Toronto, which are two of Canada's most active and expensive housing markets. Excluding these two markets from calculations trims more than $130,000 from the national average price ($398,546).
Further information can be found at http://crea.ca/statistics.