Whether they are house flippers/speculators who have been sitting on empty or rental properties with negative cash flow now looking to lighten costs, or aging owners needing/wanting to downsize home expenses and increase cash savings, or people with buyers remorse tired of being property poor, Toronto listings (the most bubble-like housing city in the world according to a new UBS study) jumped 69% year over year in September.
The market forces are moving in the right direction in Toronto and the GTA (greater Toronto area, where I live) at long last. But prices have a long way to mean revert before they can reconnect with long-standing income and affordability ratios. See Toronto home sales sink 35%, while owners count on ‘uptick‘:
Sales across the Greater Toronto Area sank 35.1 per cent year-over-year last month as 6,379 properties traded hands, according to data released by the Toronto Real Estate Board on Wednesday.
The average selling price in September was $775,546. While that marked a slight uptick from the year-ago period and August’s average price of $732,292, it was still almost 16 per cent below the April peak of $920,791.
Prospective buyers had more selection to choose from last month, as active listings surged 69 per cent year-over-year. Here is a direct video link.
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