November saw “an uptick in demand for ownership housing in the GTA this fall, over and above the regular seasonal trend,” stated Tim Syrianos, President, Toronto Real Estate Board. Transactions increased for the fourth consecutive month as GTA realtors reported 7,374 sales during the month of November, a 3.6% increase over the previous month.
The Toronto Real Estate Board stated that there were 14,349 new listings in November, a 4% decrease over last month. The number of active listings also decreased from October indicating that the market is adjusting to the season. Comparing the current results to November of 2016 we see a different story, as new listings were up 37.2% and active listings were up by 110.6%.
The average price for all home types in the GTA decreased by 2% to $761,757 during the month of November when compared to November 2016. Markham also saw the average sale price for all properties decrease to $938,241 (10%) over October, while Stouffville saw an increase to the average property price to $934,942 (11.5%) when compared to the previous month.
Properties in the GTA and neighbouring communities are still taking some time to sell. A property in the GTA took an average of 24 days, while properties in Markham are taking an average of 26 days and Stouffville 33 days.
What Does This All Mean?
The month of November continued to provide confirmation that we are in a market that is further normalizing. Overall, prices and transactions continue to stabilize during this time of year. As the impact of the Ontario housing plan and particularly the foreign buyer tax of April 2017 become further in our rear-view mirror, we look ahead to the upcoming changes to the mortgage lending guidelines that will come into effect on January 1, 2018. Moving forward we could expect further downward pressure on the market in the new year.
Other external factors such as further government intervention (such as future unexpected policy changes) and interest rate adjustments will be important topics to monitor. The guidance of a trusted and seasoned real estate agent will be important when manoeuvring the market in 2018.