The number of available homes in Toronto’s real estate market trended lower last month while home sales improved, in what the Toronto Real Estate Board (TRREB) calls a “shortage” that could pull hesitant buyers off the sidelines.
There were 5,946 homes sold in April, an increase of about seven percent from a year ago, according to the latest TRREB data. However, compared to the same period last year, new registrations fell by 9.3 percent.
“We have seen an uptick in home buying activity so far this spring. Buyers have benefited from more favorable housing market conditions due to lower home prices,” said TRREB President Daniel Steinfeld. “If market conditions continue to tighten and property prices fall, this could be a signal to potential homebuyers who continue to wait.”
Despite the largest increase in home sales so far this year, as well as lower borrowing costs and home prices, activity was relatively subdued in early spring, which TRREB attributes to global instability.
“More certainty on the trade front and an easing of geopolitical tensions would lead to further improvements in market activity,” said Jason Mercer, TRREB’s chief information officer.
The MLS Home Price Index composite benchmark fell 6.6 percent year-over-year, while the average sales price fell 4.9 percent year-over-year to $1,051,969.
In March, the average number of days on market was 31, while that number rose to 43 days in April – 16 percent longer than the same month last year – further shifting the market toward buyers.
However, longer selling times and weaker demand have not translated into lower prices, and industry groups say affordability is still constrained. TRREB argues that regulatory hurdles and rising development fees are curbing supply and keeping prices higher than they otherwise would be.
“We recently released an important new housing policy report, Removing Roadblocks: Tackling Municipal Barriers to Housing Supply and Affordability in Ontario, which outlines the next phase of provincial housing policy reforms needed to build more of the right types of housing and improve affordability for Ontarians,” said TRREB Executive Director John DiMichele.
More to come…
• Email: shcampbell@postmedia.com