forma condos.The number of houses listed in Toronto has dropped sharply. A prominent real estate agent in Toronto said that as the CAN real estate market cools and prices fall, more and more potential sellers choose to delist their homes.Please Visit: forma condos to Get Your VVIP Registration Today!
“Yes, I mean, there has been a big increase in delisting compared to last year,” John Passallis, president of Realosophy, a Toronto brokerage, said in an interview with Bloomberg on Monday. “there are three situations, one is to re-list and then lower the price, one is to delist directly, and the other is to renovate and then list after delisting.”
Although there are no specific or readily available data on how many homes have been delisted, there is no doubt that the real estate market in the Greater Toronto area has slowed.
According to the latest data from the Toronto area Real Estate Board (TRREB), home sales fell 41.4% in June from a year earlier, and the average sales price fell for the fourth consecutive month to $1.146 million, down about $200000 from February’s record level.
The number of new listings in the greater Toronto area was flat in June compared with last year, while active housing increased by 42.5 per cent, according to TRREB.
Meanwhile, benchmark real estate prices fell 1.9 per cent in June from the previous month, according to the real estate market statistics report (HMS) released by the Canadian Real Estate Association (CREA). This is the third month in a row that prices have fallen and the biggest one-month decline since 2005.
So far, there has not been a large number of home listings, but that is likely to change in the coming months, Mr. Passalis said.
“I think the catalyst may really be just, especially for investors, you know, once they start refinancing, once they are hit by this higher interest rate, whether six months from now or 12 months from now, you may see some people unable to pay their mortgages,” he said.
“you may start to see some investors exit, and they are generally the first to exit,” he added. “they don’t rely on the houses they own, their money is highly leveraged.”
“We haven’t seen that yet, but we could see it in the next few months,” Mr Passalis said.
Most economists expect the property market to be at risk as the Bank of Canada (BoC) accelerates rate hikes.
“the recent move by the Bank of Canada to raise key interest rates is laying the foundation for deeper adjustments next year,” said Robert Cavich, an economist at Bank of Montreal Capital Markets (BMO Capital Markets). Central bank governor Steve McClem unexpectedly raised interest rates by 100 basis points last week, just like hitting the real estate market with a hammer. ”
“the rise in interest rates in commercial banks makes it more difficult and more expensive for home buyers to obtain loans,” he pointed out. “the variable interest rate has risen to about 6 per cent, while the fixed rate is about 7 per cent.”