Market shifting but still active

This site posts curated data from Toronto MLS. The analysis shows that average home prices in the Greater Toronto Area are falling at a rapid pace with average home prices dropping 7% month over month in April.

However, year-over-prices are still on the double-digit rise at 15% compared to the same month last year.

Few things that are observed in the market:

• Listings are substantially higher but still 11.7% lower compared to last year.
• Banks requiring an appraisal done before closing are getting 100-150k below values from Feb/March purchases. Keep some cash buffer for surprises.
• Buyers are trying to back out of firm deals. DON’T DO IT. Always take legal advice before submitting firm(unconditional) offers.

CLICK on the images below of regional real estate activity. Prices seem to be consistently dropping. Will this lead to a “crash”? No one has a crystal ball to predict the future but it’s definitely volatile at least for a short time.