December 5, 2019 | Buying
The Toronto Real Estate Board reported a 14.2 per cent increase in sales in November 2019 compared to November 2018. With reports of 7,090 sales throughout November, sales were up year-over-year as a result in all segments of the market.
Moreover, the number of new listings entered into TREB’s MLS System in November 2019 compared to the number of active listings quantified at the end of the month were at complete opposite ends of the spectrum in comparison to 2018’s numbers. New listings reported a 17.9 per cent decline year-over-year and active listings fell an astonishing 27.2 per cent!
Supply and demand have been the common denominator over the past 3 years and an increasing number of home buyers have been directly impacted by this. With the implementation of the 2017 Ontario Fair Housing Plan and the OSFI mortgage stress test as well as the low level of housing supply, buyers have been forced to recalibrate and adjust their house-hunting expectations. Most home buyers have been forced into altering the type and/or location of the home that they are choosing to purchase or due to stricter mortgage qualifications, ultimately have had to adjust their purchase price point thereto.
Furthermore, as the market maintained these tighter conditions throughout November 2019, price growth continued to accelerate. November experienced the strongest annual rate of price growth for 2019. The average selling price increased by 7.1 per cent year-over-year to $842,637 and the MLS Home Price Index Composite Benchmark increased by 6.8 per cent year-over-year.
As a result, we’ve seen the effect of population growth versus the declining negotiated mortgage rates develop increased competition between buyers and accelerate price growth. We should expect to see the rate of price growth increase further if we don’t gain any relief on the supply in new listings.
If you’re a buyer struggling to maneuver through the current conditions of the Toronto Real Estate market, then please don’t hesitate to contact us as we are always here to help you make the move that’s right for you!