{"id":34778,"date":"2018-06-05T07:30:50","date_gmt":"2018-06-05T12:30:50","guid":{"rendered":"http:\/\/olduvai.ca\/?p=34778"},"modified":"2018-06-05T07:30:50","modified_gmt":"2018-06-05T12:30:50","slug":"torontos-house-price-bubble-not-fun-anymore","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=34778","title":{"rendered":"Toronto\u2019s House Price Bubble Not Fun Anymore"},"content":{"rendered":"<header>\n<h3 class=\"entry-title\"><a href=\"https:\/\/wolfstreet.com\/2018\/06\/04\/toronto-house-price-bubble-deflates\/\">Toronto\u2019s House Price Bubble Not Fun Anymore<\/a><\/h3>\n<\/header>\n<div class=\"entry-content\">\n<p><strong>Average price of single-family house plunges 13%, or by C$160,000 from peak. Sales of homes priced over C$1.5 million collapse by 63%. Condos still hanging on.<\/strong><\/p>\n<p>Housing in the Greater Toronto Area is, let\u2019s say, retrenching. Canada\u2019s largest housing market has seen an enormous two-decade surge in prices that culminated in utter craziness in April 2017, when the Home Price Index had skyrocketed 32% from a year earlier. But now the hangover has set in and the bubble isn\u2019t fun anymore.<\/p>\n<p>Home sales plunged 22% in May compared to a year ago, to 7,834 homes, according to the Toronto Real Estate Board (<a href=\"http:\/\/www.trebhome.com\/MARKET_NEWS\/release_market_updates\/news2018\/nr_market_watch_0518.htm\">TREB<\/a>). It affected all types of homes, even the once red-hot condos:<\/p>\n<ul>\n<li>Detached houses -28.5%<\/li>\n<li>Semi-detached houses -29.4%<\/li>\n<li>Townhouses -13.4%<\/li>\n<li>Condos -15.5%.<\/li>\n<\/ul>\n<p>It was particularly unpleasant at the higher end: Sales of homes costing C$1.5 million or more plummeted by 46% year-over-year to 508 homes in May 2018, according to TREB data. Compared to the April 2017 peak of 1,362 sales in that price range, sales in May collapsed by 63%.<\/p>\n<p>But it\u2019s not just at the high end. At the low end too. In May, sales of homes below C$500,000 \u2013 about 68% of them were condos \u2013 fell by 36% year-over-year to 5,253 homes.<\/p>\n<p>The TREB publishes two types of prices \u2013 the average price and its proprietary MLS Home Price Index based on a \u201ccomposite benchmark home.\u201d Both fell in May compared to a year ago.<\/p>\n<p>The average price in May for the Greater Toronto Area (GTA) fell 6.6% year-over-year to C$805,320, and is now down 12.3%, or an ear-ringing C$113,000, from the crazy peak in April 2017.<\/p>\n<p>There are no perfect measures of home prices in a market. Each has its own drawbacks. Average home prices can be impacted by the mix and by a few large outliers \u2013 but over the longer term, it gives a good impression of the direction. The chart below shows the percentage change in average home prices in the GTA compared to a year earlier:<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-42251\" src=\"https:\/\/wolfstreet.com\/wp-content\/uploads\/2018\/06\/Canada-Toronto-avergage-home-price-change-2018-05.png\" alt=\"\" width=\"476\" height=\"447\" \/><\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Toronto\u2019s House Price Bubble Not Fun Anymore Average price of single-family house plunges 13%, or by C$160,000 from peak. Sales of homes priced over C$1.5 million collapse by 63%. Condos still hanging on. Housing in the Greater Toronto Area is, let\u2019s say, retrenching. Canada\u2019s largest housing market has seen an enormous two-decade surge in prices [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[103,9088,2340,4900,803,15246,4254,4255],"class_list":["post-34778","post","type-post","status-publish","format-standard","hentry","category-economics","tag-canada","tag-greater-toronto-area","tag-housing-market","tag-housing-market-bubble","tag-toronto","tag-toronto-housing-market","tag-wolf-richter","tag-wolfstreet"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/34778","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=34778"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/34778\/revisions"}],"predecessor-version":[{"id":34779,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/34778\/revisions\/34779"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=34778"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=34778"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=34778"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}