The Greater Toronto Area (GTA) has seen a decline in home sales for the month of May, according to the latest report from the Toronto Regional Real Estate Board (TRREB). However, experts believe that the recent decision by the Bank of Canada could potentially stimulate demand in the housing market.
The TRREB reported a total of 11,951 home sales in the GTA for the month of May, which is a 13.4% decrease compared to the same time last year. This decline can be attributed to the ongoing COVID-19 pandemic and the resulting lockdown measures, which have significantly impacted the real estate market.
Despite the decrease in sales, the average selling price for all home types in the GTA increased by 28.4% to $1,108,453. This is a significant jump from the average price of $863,563 in May 2020. The TRREB also reported a 15.7% increase in new listings, indicating that there is still a strong demand for housing in the GTA.
Experts believe that the recent decision by the Bank of Canada to keep the key interest rate at 0.25% could potentially spur demand in the housing market. This decision was made in response to the ongoing economic uncertainty caused by the pandemic. The low interest rates make it more affordable for buyers to enter the market, which could lead to an increase in home sales in the coming months.
However, there are concerns about the impact of rising home prices on housing affordability in the GTA. The TRREB has called on the government to address this issue by increasing the supply of housing in the region. They also urge the government to consider policies that will help first-time homebuyers enter the market.
In conclusion, while the GTA has seen a decline in home sales for the month of May, the recent decision by the Bank of Canada could potentially stimulate demand in the housing market. However, there are concerns about the impact of rising home prices on housing affordability, and the government must take action to address this issue.
