A surge of new listings in the GTA in November drove home prices lower compared to October - both sellers and buyers wanted to lock in their deals before the new year, when the new mortgage guidelines will come into force.
Are you wondering whether it's better to buy/sell now or to wait? How the market condition changes will affect your home buying/selling decision? Here are some highlights for you to consider.
- New listings rose 37.2% on a year-over-year basis, which means there would now be more options available. Inventory has risen by 111% compared to November last year, when there was a listing record low.
- While the number of homes sold has increased from last month, sales have falled by 13.3% compared to this time last year.
- Changes in market conditions are not consistent across housing types - townhouses and condos, for example, are in a seller's market, while detached and semi-detached homes are experiencing a balanced market.
- Based on the recent report from the Mortgage Professionals Canada, about 18% of buyers would be affected by the upcoming changes to mortgage rules.
With the tougher mortgage qualification rules coming into play soon, the market shows some interesting data.
Wondering how the new mortgage rules could affect your home buying power? Check out our last month's blog post!
Compared to October, prices of all housing types dropped. Industry insiders suggested that home sellers (especially detached home sellers) who did not list their home earlier this year, are now being faced with the reality of change in home values in today's market, resulting in recent growth in inventory.
On the buyer's side, Will Dunning, chief economist for the Mortgage Professionals Canada, suggested that about 18% of buyers (or about 100,000 people a year) would not qualify for their desired home after the new mortgage rules take effect. It is believed that the soon-to-take-effect changes have prompted many home buyers to expedite their home buying decision.
The growing demand for home ownership is largely believed to have contributed to the price increase on a year-over-year basis. For example, condo prices are currently around 16.4% higher than they were last year.
Wondering whether it's a buyer's market or a seller's market? >>>Click here to find out.
Want to understand the market a bit better? Take the Toronto W04 area for example.
- Among the four types of home markets, condo markets saw the most robust growth in value, up by 50.4% year-over-year. That being said, if you purchased an average-priced condo unit last November at $272,191, you would earn $137,205 by selling it today, almost double the median household income in Toronto (i.e. $78,280).
- Against the GTA semi-detached market trend, in this area this type of home has showed a strong two-digit upsurge in value since the same time last year. A semi-detached home worth $672,667 last November now is valued at $772,500, an increase of 14.8%. In other words, you could gain $99,833 from this one-year possession.
- Detached homes and townhouses are experiencing a more balanced market. The prices of both home types have increased 3.8% and 2.4% respectively, over the last year.
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