The result of this May's sales reported by Greater Toronto Area REALTORS® was down by 22.2 per cent compared to May 2017. On a month-over-month basis, seasonally adjusted May sales were basically flat compared to April.
The lack of homes available for sale continued to be a problem. The fact that new listings were down by more than sales in comparison to last year means that competition increased between buyers. According to Mr. Syrianos, many home buyers are still finding it difficult find a home that meets their needs.
In a recent Canadian Centre for Economic Analysis study undertaken for the Toronto Real Estate Board, it was found that many people are over-housed in Ontario, with over five million extra bedrooms. These people don't list their homes for sale, because they feel there are no alternative housing types for them to move into.
TREB's Director of Market Analysis Jason Mercer
says about the market:
Market conditions are becoming tighter in the Greater Toronto Area and this will provide support for home prices as we move through the second half of 2018 and into 2019. There are emerging indicators pointing toward increased competition between buyers, which generally leads to stronger price growth. In the City of Toronto, for example, average selling prices were at or above average listing prices for all major home types in May.