The GTA real estate market is now “normal”, as prices continue to drop and return to reasonable levels. Prices have dropped for the fourth consecutive month but are still higher than they were last year by 3%.
Now, the average price of any home in Toronto is $732,292, down from $919,086 when the market peaked in August. This is a 20% decrease over the last four months.
Another other statistical drop is seen in housing sales, down by 34.8% compared to last August. And new listings are down 6.7% year over year as well.
Despite these drops, stabilization of the real estate market is a good thing for consumers and the economy.
Interestingly, consumers are making a marked shift in their housing choices, moving away from pricy detached homes towards condos and townhomes. This is demonstrated by the fact that detached home prices have remained unchanged while prices for condos has increased by 20% over the last year.
Overall, summers also tend to be slower for real estate activity. This can account for some of the lower sales rates. To say the GTA real estate market has crashed would be inaccurate. However, a correction is definitely occurring which should be welcomed by the GTA.