Toronto Real Estate Board President Garry Bhaura announced the continuation of moderate price growth in November 2018 compared to November 2017.
With the average selling price up by 3.5 per cent year-over-year to $788,345, Greater Toronto Area REALTORS® reported 6,251 residential transactions through TREB’s MLS® System in November 2018. Down by 14.7 per cent compared to November 2017, this result was a temporary upward shift in demand as the market was distorted by the looming OSFI-mandated stress test at the end of last year. As Mr. Bhaura said:
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.
On a preliminary seasonally adjusted basis, sales were down by 3.4 per cent compared to October 2018. The average selling price after preliminary seasonal adjustment was down by 0.8 per cent compared to October 2018. Jason Mercer, a TREB’s Director of Market Analysis, adds:
Home types with lower average price points have been associated with stronger rates of price growth over the past few months. 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.