The Toronto Real Estate Board (TREB) has recently released its housing data for the month of June. With a total of 7,974 sales reported, not only is this a 37.3% drop from the same time last year, it also represents the lowest sales total for the month of June since 2002. It's now been close to three months since the Ontario Government implemented the Fair Housing Plan, and we're beginning to see its impact with more houses coming to market, longer sales cycles and a reduction in pricing.
Though the average sales price was up 6.3% year-over-year to $793,915, it should be noted that the average sales price has declined in each of the past two months, from $920,791 in April. A high volume of new listings over the past three months (active listings are up 59.6% year-over-year) suggests that home owners may feel that prices have peaked, while buyers, who suddenly have a larger selection to choose from, are taking their time to find the right property or even sitting on the sidelines as they wait to see the true impact of the government policy.
As the market changes and the sales cycle becomes a little longer, we are noticing a change in the relationship between list price and sale price. In April, for example, in the City of Toronto, the average time a home was on market prior to sale was 10 days, with the average sale price being 11% over the list price. This June, in the City of Toronto, the average time a home was on the market prior to its sale was 15 days, with the average sale price only 1% over the list price. Though early, this suggests the marketing strategy for listing prices is changing, with sellers coming to market with figures more reflective of their intended sales price.