November G.T.A. Home Prices Continue To Climb As New Listings Fall!
Across the Greater Toronto Area, home sales dropped but home prices continued to climb as new listings fell, pushing home prices higher and signaling a tighter real estate market in November.
Sales For All Home Types Across the G.T.A. in November Were Down -14.7%
The market experienced a ” temporary upward shift in demand” in November 2017 prior to the implementation of the OSFI mortgage stress test for federally regulated lenders that came into affect in January 2018. This temporary shift “distorted” home sales performance in November 2017 to the upside, says TREB.
All Market Segments Experienced A Similar Decline In Home Sales
Detached homes sales were down -14.2%; semi-detached home sales fell -15.7%; townhome sales dropped -16.4% and condominium sales finished the month down -14.0% versus last year.
New Listings Were Significantly Lower, Down -26.1% Compared To Last Year
“New listings were actually down more than sales on a year-over-year basis in November. This suggests that, in many neighbourhoods, competition between buyers may have increased. Relatively tight market conditions over the past few months have provided the foundation for renewed price growth,” said Garry Bhaura, President of the Toronto Real Estate Board in his latest market release.
The Average Home Selling Price Across The G.T.A. Rose 3.5%
The average sale price for all home types combined across the G.T.A. in November showed steady and consistent gains on a percentage basis, on par with October 2018, rising 3.5% year over year to an average selling price of $788,345.
Home Price Growth Was Driven By Lower Average Price Points
Home price growth was driven by lower average price points in both the higher density and low-rise segments of the market as buyers, faced with the impact of the OSFI mortgage stress test and higher interest rates, navigated to the more affordable options.
Condominiums rose 7.5% to an average selling price of $556,723, semi-detached homes were up 8.3% to an average selling price $791,760. Townhomes gained 3.1% to an average selling price of $647,418. Detached homes finished the month up 1.3% over last year at an average selling price of $1,008,768.
The 905 Regions
In the 905 regions, home sales across market segments were impacted in a similar fashion to the broader market. Detached home sales fell -14.8%. Semi-detached home sales dropped -12.5%. Townhomes, the most highly impacted market segment, fell -19.6%. Condominiums ended the month down -13.5% over November 2017.
Home price growth in the 905 regions was driven by the higher density segments of the market. Condominiums rose 9.5% to an average selling price of $454,288. Townhomes gained 4.7% to an average selling price of $613,846. Semi-detached homes were up 3.6% to an average selling price of $655,504. Detached homes ended November up 0.8% at an average selling price of $903,517.
2019 Market Forecast
Looking forward through 2019, “you’re seeing price growth certainly above the rate of inflation. That’s indicative of relatively tight market conditions even with sales off their historic highs,” says Jason Mercer, TREB’s Director of Market Analysis.
If buying or selling a home is in your plans, reach out by text or email at david@dodicteam.com or give us a call any time at 416-606-2158. We’ll walk you step by step through a strategy that meets your unique goals and close the deal that is right for you. Give us a call today!
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