Toronto housing market’s new challenge: Low supply

Thursday Jul 14th, 2016

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Toronto continues to live up to its reputation as one of Canada’s most dynamic real estate markets, with the latest data from the Toronto Real Estate Board (TREB) showing healthy sales at 10,326 transactions in March and 22,575 in the first quarter of the year.

 
However, while demand was clearly not an issue, the other metrics showed an emerging trend: a shortage of properties as demonstrated by the drop in the number of new listings this quarter, compared to the same period last year.
 
In an interview with CP24, TREB president Mark McClean said that low supply in the market is one of the board’s primary concerns at present.
 
“Transactions are great. The problem that we’re facing is just the fact that we’re not getting as much product as we used to, and moving forward, that seems to be the challenge,” McClean stated.
 
TREB officials argued that this shortage might even play a role in dampening the market, which could compound in the long run.
 
“The supply of listings [continues] to aggravate many would-be home buyers.  We could have experienced even stronger sales growth were it not for the constrained supply of listings, especially in the low-rise market segments,” TREB director of market analysis Jason Mercer said in a report.
 
Despite this dearth in availability, the brakes in Toronto’s real estate activity aren’t engaging any time soon.
 
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Article shared from: Canadian Real Estate Magazine

 

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