The latest monthly report from the Toronto Real Estate Board (TREB) shows continued competitive conditions in the Greater Toronto Area resale home market. Average selling prices rose by 3.5% year-over-year in November 2018, while declining slightly when measured month-over-month against October. TREB says the long-term increase can be partially attributed to both the number of sales and listings declining year-over-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,” reads a statement issued by TREB President Garry Bhaura.
A total of 6,251 residential transactions were recorded last month, representing a 14.7% decline from last November's figures. On a preliminary seasonally adjusted basis, sales dipped 3.4% month-over-month, while average selling price after preliminary seasonal adjustment was down 0.8%. The year-over-year numbers are a bit misleading without context, as market demand spiked last November in anticipation of the year-end OSFI-mandated stress test.
“Home types with lower average price points have been associated with stronger rates of price growth over the past few months," reads a quote from Jason Mercer, TREB’s Director of Market Analysis. "Given the impact of the OSFI-mandated mortgage stress test and higher borrowing costs on affordability, it makes sense that the condo apartment and semi-detached market segments 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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