TORONTO — Toronto’s infamous “housing crisis” seems to be constantly contradicted by the data: not only are there homes, but they even remain unsold. This is what emerges from the latest report from the Toronto Regional Real Estate Board (TRREB): according to the real estate board, home sales and prices in the GTA (Greater Toronto Area) decreased in October compared to the previous year, due to persistent economic uncertainty. In fact, there are more and more homes that no one is buying.
In the report (available here) The Toronto Regional Real Estate Board states that home sales in October totaled just 6,138, down 9.5% from last year, which, on a seasonally adjusted basis, resulted in a 2.3% decline compared to September. The board states that new listings totaled 16,069, up 2.7% from last year, while active listings, at 27,808, increased 17.2%. Increased listings and declining sales have put pressure on prices, with the benchmark index declining 5% from last year, while the average sales price of $1,054,372 is down 7.2% from last year. On a monthly basis, however, the average price decreased 1.4% from September. More specifically, by home type, the average price of a detached house fell 7.3% to $1,355,506, while the average price of a condo fell 4.7% to $660,208.
TRREB Chair Elechia Barry-Sproule says that both lower home prices and interest rates are helping well-positioned buyers. “Buyers who are confident in their employment situation and ability to make their mortgage payments over the long term are benefiting from affordable housing market conditions relative to the past few years” she said in a statement, today, on TRREB’s website, adding that “however, many intending homebuyers remain on the sidelines due to uncertainty about their economic future…”.
In perspective, TRREB Chief Information Officer Jason Mercer said he expects the market to recover once people are more confident in the economy. “Once we have more certainty on the economic front, including trade with the United States and China, home sales should increase…”.
In short, the houses are there. Perhaps they’re still too expensive? Politicians should think about it and perhaps try to change their strategy, finding a way to control the still-crazy house prices in Toronto and the GTA, rather than continuing to build new ones. Or perhaps construction is a business that’s also useful to politicians?
Photo by Jakub Żerdzicki from Unsplash
