"The housing prices that you see, the multiple bidding in Toronto, it is all an artificially created environment,” Ross Kay of Ross Kay Realty Consultants told MortgageBrokerNews.ca. “The consumer is told the market is busier than what it is; they’re told there are more homes for sale than there really are.”
As evidence of his theory, Kay points to CREA’s January numbers, which report 4,135 sales for all of Toronto. Toronto Real Estate Board (TREB), itself, also reports a total of 4,135.
TREB includes Mississauga, Orangeville and district, Milton, York region and Durham region sales within its 4,135. CREA, meanwhile, includes the 4,135 total and each region’s individual tallies for Ontario’s total; essentially reporting some numbers twice, according to Kay.
However, there is a simple explanation for this, according to CREA economist, Chris Jokel, who said the total reported for all of Ontario does not count GTA regions numbers twice.
“So you end up with 11,002 (for the sum of all regions),” Jokel told MortgageBrokerNews.ca. “The actual Ontario total we are displaying is 9,298 because it doesn’t double-count those Toronto areas; basically, we just include them in the table so people can see how the numbers are broken down.”
Still, Kay is unwavering.
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One industry analyst is questioning how CREA reports its home sales data, suggesting his own analysis points to a less frenetically-paced market.