November saw the strongest annual growth for Toronto property prices, reports the Toronto Real Estate Board (TREB).
Property prices for houses for sale in Toronto climbed 7% from November 2018 to $843,637.
November likely picked up because buyers have adjusted to new market conditions, which include tighter mortgage lending rules and policies from Ontario’s 2017 Fair Housing Plan. Sales grew by 14% year over year to 7,090 transactions.
“An increasing number of home buyers impacted by demand-side policies over the past three years, including the 2017 Ontario Fair Housing Plan and the OSFI mortgage stress test, have moved back into the market for ownership housing,” says Michael Collins, TREB president. “Based on affordability and stricter mortgage qualification standards, many buyers may have likely adjusted their preferences, changing the type and/or location of home they ultimately chose to purchase.”
But another important piece of the puzzle is simply extremely low supply — new MLS listings dropped by 18% year over year and buyers have little to choose from. And because demand is still strong, judging by the increase in sales, there’s increased competition for the remaining properties available.
All housing types saw a surge in prices this November — single family homes grew 3.5% to $1,044,138, semi-detached houses rose 5.7% to $837,573, townhouses rose 3% to $666,744 and condos jumped double-digits, by 11.1% to $617,658.
Buyers looking for a bargain should head to the Durham region, where single-family homes can still be had for under $800,000, and sometimes considerably less in Oshawa, Pickering, Ajax and Whitby. They should steer clear of the York and Halton Regions and in which almost all cities, including Aurora, Vaughan and Richmond Hill, Oakville and Burlington, have homes that top the $1-million mark.
Those on the hunt for a condo should check out Mississauga which has the most active market outside of the 416, but units only average just over $500,000. In comparison, condos in the Toronto city centre run to over $700,000.
TREB expects all these prices to continue to rise unless we see a dramatic increase in supply.
“Strong population growth in the GTA coupled with declining negotiated mortgage rates resulted in sales accounting for a greater share of listings in November and throughout the second half of 2019, said Jason Mercer, TREB’s chief market analyst. “Increased competition between buyers has resulted in an acceleration in price growth.”
For more information on October’s housing market, check out the infographic below:
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Writer: Danielle KubesDisclaimer: All investing can potentially be risky. Investing or borrowing can lead into financial losses. All content on Bay Street Blog are solely for educational purposes. All other information are obtained from credible and authoritative references. Bay Street Blog is not responsible for any financial losses from the information provided. When investing or borrowing, always consult with an industry professional.