The Toronto housing market tightened further in July as new listings fell at a faster pace than home sales , leaving buyers with fewer homes to choose from and increasing competition for properties.
According to the latest results from the Toronto Regional Real Estate Board (TRREB), home sales slipped 0.9 per cent from a year earlier to 5,995 in July, while the number of new listings fell 17.8 per cent to 14,484.
On a seasonally adjusted basis, sales increased from June while new listings declined, leading to tighter market conditions over the summer. The TRREB MLS benchmark Home Price Composite Index was down 4.6 per cent year over year to $934,600 but edged higher compared to June.
Jason Mercer, TRREB’s chief information officer, said stronger-than-expected economic growth and employment data could encourage more buyers to return to the market. “This could help bolster consumer confidence and prompt an uptick in home purchases in the months ahead, especially if home prices stabilize as we move through the fall,” he said.
While the data indicates fewer listings, real estate agents say buyers remain selective and the shift toward constrained supply has not been felt evenly across all property types.
“Buyers, for the most part, don’t tend to notice the reduction of listings in the condo market as they still have tons of inventory to choose from. For buyers looking for houses, they definitely notice the lack of inventory,” Davelle Morrison, a broker at Bosley Real Estate said.
In July, the condo market remained better supplied than the detached home market. Condos accounted for 8,352 active listings and 1,564 sales, compared with 12,154 active detached listings and 2,789 sales.
Morrison added that sellers remain cautious overall.
“Sellers are still feeling nervous about pricing, as the reduction in listings hasn’t translated to an increase in prices yet,” she said.
Cailey Heaps, president and CEO of Heaps Estrin Real Estate Team, said buyers continue to focus on value rather than rushing to purchase.
“Even as market conditions begin to tighten, buyers remain selective and are unwilling to overpay,” she said.
• Email: shcampbell@postmedia.com