SmartLiving by Smartcentres . Home sales rose 1.6 times and the average price hit a record high of 1.1 million. However, it is also the second month in a row that a monthly downward adjustment has been recorded after the peak in March this year. Please Visit: SmartLiving by Smartcentres to Get Your VVIP Registration Today!
Nevertheless, due to insufficient supply, the market is still tight enough to push the average transaction price to an all-time high of 1108453 yuan in May.
According to the May second-hand housing market report released yesterday by the Toronto area Real Estate Association (Toronto Regional Real Estate Board,TRREB), there were 11951 residential property changes in most areas last month, down 13 per cent month-on-month and a 1.6-fold year-on-year increase. May 2020 is the second full month affected by the epidemic.
The sales volume in May this year was also lower than that of 12789 cases in May 2016, but higher than the average turnover of 10336 cases from 2010 to 2019. Generally speaking, May is the strongest month for sales, but sales in May this year are even lower than in March, breaking the trend.
Lisa Patel, president of TRREB, said that buyers’ demand for buildings in most regions and all regions was very strong, whether it was low-rise properties with connected land or high-level co-managed Pavin categories. The main reasons are buyers’ confidence in the economic recovery and low borrowing costs. However, due to the lack of a normal pace of population growth, trading volumes in the past two months have fallen from their March highs.
The average transaction price of residential property reached an all-time high of 1108453 yuan in May, a year-on-year increase of 28.4% and a slight increase of 1.6% from a month ago.
On the supply side, the number of new orders released in May was 18586, down 11% from 20825 in April, but more than double the 9126 in the same period last year.
Jason Mercer, chief market analyst at TRREB, pointed out that the decrease in new opening volume means that potential buyers still have to face fierce competition among buyers, putting upward pressure on transaction prices. Even in the co-managed Bowen category, tight market conditions will lead to more widespread competition.
John DiMichele, chief executive of TRREB, said that the shortage of housing supply in South Ontario is already very obvious, and governments at all levels are well aware that it is a problem. To deal with this problem is not only to ensure the affordability of buildings in the long run, but also to maintain the economic competitiveness of the Dagin Horseshoe area. The general public and businessmen want to settle and do business in areas where there are a large number of affordable housing and rental options.