GTA home prices keep increasing with a drop in new listings

Greater Toronto Area (GTA) home prices have continued their rise backed by steady demand in the market. Home prices in the GTA went up by a whopping 3.5% on a year-on-year basis to stand at $788, 345 which includes both detached homes and condominiums. However, listings and sales volumes came down a bit which has spurred higher competition amongst prospective homebuyers in several localities as per TREB.

Resale property deals came down by 14.7% to stand at 6, 251 for November 2018 as compared to November 2017. However, new listings also fell by 26% as per TREB reports. New listings are still higher by 12% on the year-to-date basis as per the latest TREB figures. New real estate listings went up after the announcement of the Government policy and subsequent cooling measures. However, these listings have been absorbed now as per market experts. Supply of housing continues to be low in the GTA and this has kept prices rising in the region.

Double-digit growth in home prices was witnessed in the entire GTA prior to the implementation of the Fair Housing Plan and buyers were competing massively for properties with several offers and deals being announced. Several GTA neighbourhoods are once again transforming into red-hot markets but there will still be some time before the boom returns according to industry experts. For 2019, price growth will be higher than inflation in some housing categories. Lower priced housing units represent a category that is fast-growing, especially since the mortgage test necessitates buyers to qualify for loans above rates being offered by their banks. This and growing rates of interest have severely negated overall affordability.

Prices of condominiums have gone up by around 7.8% in the GTA (year-to-date) although prices of detached homes have come down by 7.8% roughly. For last month, detached home prices went up by 1.3% (average) in the GTA to stand at around $1 million and prices of this home category remained at higher levels in the City of Toronto which had a year-on-year growth of 1.8%. Regional average pricing touched $791, 760 for semi-detached homes which is higher by 8.3% and town homes were priced at 3.1% more on a year-on-year basis at $647, 418. Condominiums had prices going up by 7.5% as well with average selling prices standing at $556, 723.