Toronto Real Estate Market Watch 11/18
Grab a handful of Halloween candy & pull up a chair, here’s our market report for the month of October!
To begin, TREB President Garry Bhaura has announced year-over-year increases in both the number and the average price of resale homes. “Annual sales growth has been positive since the late spring,” reads a statement from Bhaura. “While the OSFI stress test and higher borrowing costs have kept sales below 2016’s record pace, many households in the Greater Toronto Area remain upbeat on home-ownership as a quality long-term investment. A strong regional economy and steady population growth will continue to support the demand for housing ownership as we move into 2019.”
The 7,492 sales recorded in October 2018 represents a 6% year-over-year increase, but show a 1% decline when measured month-over-month to September 2018. The increase in demand bumped up price appreciation for this month, with average sale prices for resale homes up 3.5% year-over-year, now reaching $807,340.
In continuation, Toronto’s housing market showed ongoing signs of stability in October as prices for condos and semi-detached homes jumped, even as total unit sales were little changed. The housing market continues to recover after a slowdown earlier this year in which tougher mortgage qualifications took effect, in addition to a rise in mortgage costs. The beginning of the year had a rough start, as the rule changes made it more difficult to borrow for a home.
However, the number of new listings declined in October 2018 to 14,431, down 2.7% from last October. The combination of sales increasing and listings declining suggests a tightening of market conditions.
Jason Mercer, TREB’s Director of Market Analysis, spoke on the tightening market: “annual sales growth has outstripped annual growth in new listings for the last five months, underpinning the fact that listings supply remains an issue in the Greater Toronto Area. With municipal elections in the rear-view mirror, all levels of government need to concentrate on policies that could remove impediments to a better-supplied housing market, including facilitating the development of a broader array of medium density housing choices.”
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