Here's the one true sign the Toronto housing market might be in trouble
There are a few signs that Toronto's red-hot housing market has been starting to cool somewhat in recent weeks, with highly reduced transaction volumes, a slight dip in prices and industry people saying we're entering more of a buyer's market for the first time in a long time.
Condo sales in particular are levelling off, with residents having a glut of listings to choose from, and less pressure than the hectic and competitive height of the market back in February.
Along with lower sales numbers and prices, there is another unique trend arising: more and more homeowners cancelling their real estate listings.
So it's happened. There were more freehold (house) listings prematurely terminated last week than sold. Was the week after a long weekend (was low last week). But I'm thinking we'll soon see some consecutive weeks over 100% (non-Jan) for 1st time since May-Jul 2017. /1 pic.twitter.com/mfw9KYSh5A— Scott Ingram REALTOR® (@areacode416) May 30, 2022
Though this can sometimes be a strategic move, in many cases it is because a seller simply isn't getting their price or the number of offers they want — even more of an indication that property owners are losing their grip on what is a notoriously overvalued and generally bonkers market.
According to the experts at GTA condo listing site Strata.ca, not only are there fewer condos changing hands (51 per cent less in June than in March) and also lower prices ($100 less per square foot than during the peak in February), but also a whole lot more listings being terminated.
The same is happening for all home types in the region, too.
A total of 2,800 listings were pulled from Strata in June, which the firm notes is a shocking 640 per cent increase from January's figures.
"Sellers aren’t getting the price they want on offer night. So they’re terminating, then relisting at the price they want," the latest newsletter from the company reads.
"The landscape has shifted in [buyers'] favour as we continue along in this soft buyer’s market. Since January’s record-lows, total inventory has spiked across the GTA. This means buyers not only have more options, but they’re coming to the negotiating table with a renewed strength we haven’t seen in over six months."
Meanwhile, in Canadian real estate:— Markets, Options & more📈 (@Markets_Options) June 3, 2022
In the GTA (Greater Toronto Area) "11,263 listings 🏡 were terminated last month". https://t.co/44x20xfzQq
The same phenomenon is happening in places such as Vancouver, Halton and Peel, with most being relisted at a different price point rather than taken off the market altogether amid lower interest in properties (and higher mortgage interest rates).
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