The Toronto Real Estate Board has down that the market’s sales volume fell by 14.7% year-over-year in November, while new listings declined 26.1% during the same period, coupled with the average sales price growth of 3.5% annually (up to $788,345).
The trend points to a vicious cycle for the near future, says TREB president Garry Bhaura.
“These numbers reflect a tighter marketplace, which will translate into increasing competition between buyers and also likely provide the foundation for renewed price growth” Bhaura warned.
There will be stricter mortgage qualification rules introduced in the new year, which are becoming more of a burden to the market than anything. “We’re seeing strong rates of price growth on homes with lower average price points, such as condos and semi-detached homes. This is largely due to the impact of the OSFI-mandated mortgage stress test and higher borrowing costs, which have impacted affordability and pushed many consumers to consider a lower-priced home.”
“Not only is it important to build more housing, it’s important to consider the kind of housing we build and where it’s built in relation to access to transportation alternatives” Bhaura explained.
“Specifically, we must focus on producing an adequate supply and appropriate mix of housing types, where ‘missing middle’ housing (home types that bridge the gap between a detached home and a condo) and transit supportive housing developments should be priorities.”