Toronto Real Estate Market Watch 12/18
As numbers show, the amount of homes sold across Toronto declined in November compared with a year ago, yet prices continued to climb with moderate growth. You may be wondering, why the large drop of sold listings by 14.7% from last year? Part of the drop is owed to the unusual spike in sales in November of last year, when buyers hurried to close deals before tougher mortgage stress-test rules took effect in the new year. In addition, the ongoing decline in inventory has been to blame for fewer sales.
This lack of inventory and fewer sales has contributed to pushing home prices up 3.5% in November on a year-over-year basis to an average of $788,345 for all types of homes across Toronto. Since new listings fell in September and October compared with the same months last year, the “relatively tight market conditions have provided the foundation for renewed price growth in the GTA”, TREB reports. In continuation, the average sale price was virtually flat in November compared to October of this year, down just 0.8% on a month-over-month basis. So, while year-over-year investment has seen a surge in sold price, the present market is relatively stable and continuing to go strong!
We are seeing detached home prices stabilizing in the Toronto region and most of the price growth coming from condominiums. Condominiums sold for an average of $556,723 in November, up 7.5% compared with the same month last year, while the average detached home sold for $1,008,768, an increase of 1.3% over November 2017.
Semi-detached home prices also had big gains in price growth, with semis rising 8.3% in November compared with last year. The average price for a semi-detached property in Toronto was $1.06 million. However, since semi-detached homes account for a much smaller volume of total sales than detached homes and condominiums, condos are still the powerhouse of the market.
So where does this leave the market? We had seen immense increases in past years which were due for stabilization. There are some interesting economic factors that may come into play – such as oil prices and manufacturing closures – but we have yet to see the effect on real estate. More moderate price growth has kept things stable for sellers but has given opportunity for buyers as well.
Insider Advice On the East Side: we’re seeing greater balance locally. While there are multiple offers happening for homes that are priced at value, the homes listed near the “peak” value from months back might be on the market for longer and not find themselves in a multiple offer situation. This is a welcome situation for any buyer who has been through the ringer of offer nights. With a lower volume of sales, the stats are skewed based on a smaller sales average so we suggest not taking the percentage changes too literally this time of year, especially coming off the boom of November 2017.
What do you think of the current trends? Do you have questions about the market that need answers? Reach out to us to start the conversation! We’re here to help you navigate the current and future market. email@example.com 416.699.0303