Home sales were down 14.7% and average selling prices were up 3.5% in November 2018 compared to November 2017. Certain asset classes and neighbourhoods continue to outperform while others do not. Buyers and sellers should seek the advice of a professional REALTOR®️ before making any decisions in the present market.
Condominiums across many parts of the GTA continue to show strength as buyers priced out of the freehold market settle for condos, millennials step up to purchase their first home, and downsizers seek smaller spaces close to amenities. A strong local economy, foreign investment, and immigration also continue to drive sales and price growth. A pullback in condo strength may be likely heading into 2019 due to rising interest rates and a higher rate of new condo completions increasing market supply.
The Bank of Canada is expected to continue raising interest rates to 2020 bringing us back to a neutral overnight rate of 3% (we are currently at 1.75%). The next rate announcement is scheduled for January 9, 2019. However, many economists believe that the next rate increase will not occur until Spring 2019. Rate increases are expected to be gradual and based on economic data. Rising rates may impact purchasing power and market demand, but should serve to bring real estate market fundamentals back into more balanced conditions - a breath of fresh are from the real estate frenzy of early 2017.
Toronto Real Estate Board (TREB) Market Watch Report
Below is a market snapshot of single family and condominium apartment price growth by municipality as of November 30, 2018.
The figures cited in this note are an average. Please contact us for neighbourhood specific information so you can make an informed decision if you are thinking about making a move.
If you want to know how prices are performing by asset class in your specific neighbourhood or any neighbourhood in the GTA you may be interested in, please click here.
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Commercial Investment
Multifamily Investment
Mixed Use
Fixer Uppers
Estate Sales
Bank Owned
Single Family Home Price Index
Toronto: +0.08% (1 Month), +1.21% (3 Month), -0.92% (6 Month), +2.70% (1 Year)
Mississauga: -0.80% (1 Month), +0.49% (3 Month), +0.04% (6 Month), +1.86% (1 Year)
Brampton: -0.04% (1 Month), +0.70% (3 Month), +0.53% (6 Month), +4.11% (1 Year)
Vaughan: -1.18% (1 Month), -1.64% (3 Month), -3.53% (6 Month), -2.89% (1 Year)
Richmond Hill: +0.46% (1 Month), -0.87% (3 Month), -2.78% (6 Month), -4.95% (1 Year)
Markham: -0.25% (1 Month), -1.25% (3 Month), -2.22% (6 Month), -4.32% (1 Year)
Condominium Apartment Home Price Index
Toronto: -0.34% (1 Month), +0.54% (3 Month), +1.71% (6 Month), +10.30% (1 Year)
Mississauga: +1.40% (1 Month), +0.94% (3 Month), +1.52% (6 Month), +9.80% (1 Year)
Brampton: +0.26% (1 Month), +0.38% (3 Month), +2.75% (6 Month), +6.91% (1 Year)
Vaughan: +0.72% (1 Month), +0.49% (3 Month), +0.90% (6 Month), +3.76% (1 Year)
Richmond Hill: -0.49% (1 Month), -2.12% (3 Month), -1.16% (6 Month), +2.74% (1 Year)
Markham: 0.32% (1 Month), +0.09% (3 Month), +4.43% (6 Month), +7.11% (1 Year)
*How to use these numbers: If on November 1, 2018 the price of a condo in Toronto was $500,000, it would be worth $498,300 on November 30, 2018 based on the home price index (HPI). That $500,000 condo in Toronto depreciated $1,700 in November or $56.67 per day.
Prepared by Michael De Luca, Real Estate Sales Representative at Private Service Realty (PSR), Brokerage
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