Toronto real estate typically has a cooler winter, but there was some interesting data points from last month. Toronto Real Estate Board (TREB) numbers show that prices continued to soften across Greater Toronto in November. This was accompanied by a slide in sales, as well as a huge jump in inventory.
Prices Reach A Negative Milestone
The benchmark price is up, but still tapering for composites. The composite benchmark, which is a typical home, across TREB is now $744,700, a decline of $2,900 from the month before. This represents an 8.41% increase compared to the same time last year. In the City of Toronto proper, the benchmark is now $791,300, a 12.33% increase compared to the same time last year. These numbers are higher mainly due to the increase in condo prices.
The tapering of price growth is the highlight of this report. The 12 month increase of 8.4% is the lowest since March 2015. The benchmark price is also 8.78% lower than the peak benchmark obtained in May 2017. While prices are still higher than last year, they are dropping – there’s no denying that.
The average price also reached a new milestone, going negative on a 12 month trend for the first time in years. TREB reported an average sale price of $761,757 in November, a 2.35% decline from the month before. This represents a 1.92% decline compared to the same month last year. This is the first dip into negative territory since 2009, for the annual average price.
Toronto Real Estate Sales Buck The Seasonal Decline, But Are Still Down
Sales of Greater Toronto real estate typically make a monthly decline in November, but that wasn’t the case this year. There were 7,374 sales, a 3.60% increase from the month before. Compared to last year however, sales were down 13.72%. Breaking those sales down, 2,978 of the sales were in the City of Toronto proper. That’s a slightly better 11.78% decline for the City, when compared to last year. Many believe that the monthly uptick is due to new mortgage rules set to hit the market in January.
Toronto Real Estate Listings Are Up Over 110%
There’s a lot more inventory this year than last year, which should provide relief from climbing prices. New listings in Greater Toronto reached 14,349, a 3.72% decline from the month before. This represents a 36.42% increase compared to the same month last year. The monthly decline was substantially smaller than the typical decrease, and was way higher than last year’s record lows.
Active listings, which are the number of listings that remain at month end, also saw a big climb compared to last year. TREB reported 18,197 active listings across all segments, a 3.51% decline from the month before. This represents a yuge 110% increase compared to the same month last year. Once again, last year was record lows, so it’s expected to be higher. However, a 110% jump is a pretty rapid climb for inventory.
Toronto real estate continues to see prices soften with a decrease in sales, and more inventory. That may seem like a bad thing, but it shows that the market is responding to normal mechanics – which is a good start. However, if there was a boost to sales from people trying to squeeze in before the new mortgage rules in January, conditions can continue to soften even further.
Like this post? Like us on Facebook for the next post in your feed.