GTA sales dip after steady rise, Prices steady
After months of rebounding spectacularly, homes sales in the Greater Toronto Area fell 14.7% in November compared to the same time last year.
According to the Toronto Real Estate Board, there were 6,251 residential sales last month, a sharp decline from November 2017, and a 3.4% dip from October 2018.
The average sale price, however, rose 3.5% compared to November 2017, reaching $788,345, which indicates that although fewer homes are being sold, the region’s pricing scheme isn’t being affected.
According to TREB, the decline is a consequence of a “temporary upward shift in demand” that occurred in November 2017, as homebuyers scrambled to get into the market before the impending B-20 mortgage stress test kicked in. However, the number of listings last month declined 26.1% to 10,534 from 14,260 in November 2017.
“This suggests that, in many neighbourhoods, competition between buyers may have increased,” TREB President Garry Bhaura said in a release. “Relatively tight market conditions over the past few months have provided the foundation for renewed price growth.”
Homes listed on the lower end of the pricing spectrum, like condos and semi-detached houses, are bucking the trend with increased sales. The likely reasons are the mortgage stress test and higher borrowing costs.
Thinking of buying or selling a property, or have a question regarding the real estate market? Fill out the form below and I'll get back to you promptly.