Toronto’s real estate market has been in flux. TREB recently released their data on GTA’s real estate market for November 2018. Sale prices continued to go up gradually, but home sales fell again.
Home sales were down nearly 15% compared to November 2017. This combined with the rising sale prices indicate that Toronto remains a seller’s market. “This suggests that, in many neighbourhoods, competition between buyers may have increased,” said TREB president Garry Bhaura in a release. “Relatively tight market conditions over the past few months have provided the foundation for renewed price growth.”
Although the number of homes sold declined, the average price rose by 3.5% year-over-year. When adjusted seasonally, the average price was pretty flat down by 0.8% compared to October 2018.
TREB said that November’s decline was due to a “temporary upwards shift in demand” in November 2017. November of last year was just prior to stress-test rules for lenders.
Condo prices saw the biggest increase. They rose 7.5% year over year last month. The average price came in at $595,678.
“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,” said Jason Mercer, TREB’s director of market analysis.
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