Toronto home prices dip in November as new listings surge

Theglobeandmail.com
Dec. 5, 2017
By Janet McFarland

Toronto home prices dipped in November as new listings soared, leaving unsold inventory at more than double the level from the same time last year.

The Toronto Real Estate Board said the average home sold for $761,757 in the Greater Toronto Area in November, down 2.4 per cent compared to October. The price drop halted a modest price recovery that began in September and continued in October after a downturn through the spring and summer.

The average selling price for all home types in the GTA was down 2 per cent compared to a year ago, while the average detached house price of $996,527 was down almost 6 per cent from a year ago. GTA prices have fallen 17 per cent on average from the market's peak in April.

ason Mercer, TREB's director of market analysis, said changes in market conditions have not been uniform, and there is still a seller's market for townhouses and condominiums in many neighbourhoods, while conditions are more balanced for detached and semi-detached homes.

However, even the buoyant condominium sector, which has held up far better than the house sector, saw some weakness in November, with average prices falling 1.2 per cent compared to October. The number of units sold fell 8 per cent in November compared to the same month last year.

TREB said the average GTA condo sold for $516,965 in October, with condo prices in the City of Toronto averaging $555,396 and prices in the 905 region surrounding Toronto averaging $414,782.

New home listings climbed 37 per cent over last November, leaving 18,197 homes listed for sale in the GTA at the end of November, a 111-per-cent increase in inventory from 8,639 homes listed at the same point last year.

The higher inventory of available homes means more available options for would-be buyers, spurring sales.

TREB said a total of 7,374 homes of all types were sold in November, which was up 3.6 per cent from 7,118 units in October, bucking the usual trend of lower November sales compared to October. Sales were down 13 per cent compared to November last year, however.

TREB president Tim Syrianos said the impact of Ontario's housing reform measures announced in April appears to be waning, creating more buyer demand that spurred the month-over-month uptick in sales.

"On top of this, it is also possible that the upcoming changes to mortgage lending guidelines, which come into effect in January, have prompted some households to speed up their home buying decisions," Mr. Syrianos said in a statement.

Conditions continue to be stronger in the City of Toronto than in the 905 region surrounding the city, TREB reported. Detached house prices were down 5.1 per cent in Toronto in November compared to a year ago to an average of $1,276,184, while detached prices slid 6.2 per cent to $898,605 in the 905 region. Condominium sales fell 12 per cent in the 905 region in November compared to November, 2016, while condo sales were down 6 per cent in the City of Toronto.