TORONTO – The Toronto Regional Real Estate Board reports that November home sales fell in line with recent months, with activity falling by roughly half compared to last year.
According to the board, November’s 4,544 sales were a 49 percent decrease from the previous year, as rising interest rates continue to put pressure on affordability and the real estate market.
According to the report, the total of 8,880 new listings for the month represented a 12% decrease from the previous year and a decrease from the previous month.
Number of Listings Fall
The number of listings had decreased as a result of sellers delaying their sales out of concern that they wouldn’t sell for as much as they would have 10 or 12 months ago when the market was booming.
In November, the composite benchmark price was down 5.5 percent from the previous year, while the average price across home types was down 7.2 percent.
A detached home’s average price fell 11.3 percent to $1.39 million, while a condo’s average price fell 0.9 percent to $709, 000.
Selling prices fell earlier this year as interest rates began to rise, but have remained relatively stable in recent months, according to a news release by TRREB’s chief market analyst Jason Mercer.
“The significant downward price trend observed in the spring has ended.” Since the summer, selling prices and average monthly mortgage payments have been flat.”
According to TRREB president Kevin Crigger in the release, the market’s overall retreat is more of a short-term trend, with the longer-term concern remaining one of supply given the large share of record immigration that will head to the Toronto area.
“The long-term challenge for policymakers will be to ensure we have enough housing to accommodate population growth, rather than inflation and borrowing costs.”
Toronto’s sales figures followed a similar pattern to Vancouver, where the Real Estate Board of Greater Vancouver reported last week that home sales were down 53% year on year.
