06 Dec Market Update November 2017
**City of Toronto Real Estate Market Update**
In the month of November, we continued to see a decline in sales activity year over year (YoY) for all home types in Toronto. In addition, we also began to see a YoY buildup of listing inventory, especially in the detached, semi-detached and row house segments. The growth in listing inventory was driven by new listings and longer sales cycles (# of days on the market). On a more positive note, we did see steady to slight declines in inventory levels when comparing November 2017 to October 2017 (month over month).
Average home prices in the detached and semi-detached categories displayed moderate price declines on a YoY basis (down 5% and 1%, respectively). Row houses and condo suites displayed strong double-digit YoY growth in prices in the month of November (14% and 18%, respectively). With the impending mortgage qualification changes coming into effect January 1st, 2018, we experienced an increase in buyer demand in the month of November, driving up prices in these more affordable segments of the market. It is likely that some buyers sped up their home purchases before the new rules come into effect. Come the new year, we will likely see even greater demand in the condo, row and semi-detached market as some buyers with greater than 20% down-payment may no longer be able to afford the same mortgage amount they once did. We will have to wait and see the effects of the new mortgage qualification rules, as the data are released in the first 3-6 months of 2018.
There is still very strong demand in a number of Toronto neighbourhoods, with many properties still attracting multiple offers. Realtors are often calling for offers on a specific day – a strategy commonly used when demand is forecasted to be quite strong for a particular property. It will be interesting to see how things play out in the new year when the new rules take effect.
If you would like more information on your neighbourhood, or a neighbourhood of interest, feel free to call, text or email me at any time.
Mark Lebovits, Sales Representative
Royal LePage Real Estate Services Ltd., Brokerage
416-274-4984 | email@example.com