It’s become a buyer’s market in the Greater Toronto Area (GTA) as home sales in Canada’s largest metropolitan region fell 13.3% in May.
Home sales fell and inventory levels rose across the GTA in May, providing potential homebuyers with more leverage and room to negotiate on price.
The Toronto Regional Real Estate Board (TRREB) says 6,244 homes were sold in May, down 13.3% from a year earlier.
At the same time, new listings reached 21,819 in May as we head into the summer months, up 14% year-over-year.
The average selling price for a home in the GTA decreased 4% compared with a year earlier to $1.12 million.
The board said even as average selling prices and borrowing costs have come down from last year, a weakening economy is affecting home-buying decisions and leading to poor sales.
It will likely take trade stability with the U.S. before consumer confidence and home sales pick-up again in the Toronto area, added the real estate board.
The situation in Toronto is not unique. Weak home sales have been reported this spring in major markets across Canada, such as Vancouver, Calgary and Ottawa.
