Canada’s largest city remains a seller’s market after home sales across the Greater Toronto Area (GTA) dropped nearly 15% this November, compared to a year ago.
According to the Toronto Real Estate Board (TREB), there were 6,251 residential transactions recorded through its system last month, a 14.7% drop compared to November last year. On a seasonally adjusted basis, sales were down by 3.4% compared with October 2018.
The average selling price for November was up by 3.5% year-over-year to $788,345, according to TREB. When adjusted seasonally, the average sale price was down by 0.8% compared to October 2018.
Additionally, the MLS Home Price Index composite benchmark, which allows you to see trends in home prices for a specific type of house in a given neighbourhood, was up by 2.7% compared to November 2017.
TREB blamed November’s decline in home sales on a “temporary upward shift in demand” in November 2017, which was ahead of the “looming” stress test rules coming into effect at the end of last year.
TREB President Garry Bhaura says new listings were down more than sales on a year-over-year basis in November, down to 10,354 from 14,260 compared to November 2017.
“This suggests that, in many neighbourhoods, competition between buyers may have increased,” said Bhaura.
However, “relatively tight market conditions over the past few months have provided the foundation for renewed price growth.”
Additionally, TREB’s Director of Market Analysis, Jason Mercer says, “home types with lower average price points have been associated with stronger rates of price growth over the past few months” due to the stress tests and higher borrowing costs.
Because of this, Mercer says properties like condos and semi-detached homes experienced relatively stronger rates of price growth in November, as market conditions in these segments remained tight or tightened respectively over the past year.
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