Greater Toronto Area Report May 2017, Steve Moran, Remax

Toronto home sales are cooling fast since the Ontario government announced new housing measures in April intended to temper rapid price growth that has given rise to concerns that Toronto has become increasingly unaffordable. May sales plunged 20.3 percent from a year earlier.

It's too early to draw a firm conclusion whether the cooling market is due to the new housing measures or to buyer fatigue with sky-high housing prices.

Recent developments in Vancouver's housing market following the implementation of a foreign buyers tax in August 2016, suggest the softening in Toronto home sales could prove short-lived. Vancouver home sales cooled initially as buyers stepped back to see how the changes shook out and rebounded to near record levels in May.

Though sales have eased, prices are still through the roof with the average selling price for all properties in the Greater Toronto Area in May soaring to $863,910, an increase of 14.9 percent from the same month last year.

Looking ahead, I suspect we'll see a modest correction at the high end of the Toronto market for a few months before stabilizing and ultimately moving higher again, at least while interest rates remain at current levels.

Thanks for watching, I would be happy to help you with your real estate needs. I can be reached at 416-949-1684 or you can visit me at http://www.stevemoranhomes.com.

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