November, let’s take a look…
Last month saw a 14.7% drop in the number of sales as compared to November 2017, an expected result given January 2018 was about to kick off another new mortgage stress test and buyers were rushing to beat the new benchmark.
November ’18 listings were down year over year, new listings were down a significant 26.1%—available inventory tightens, home prices rise particularly the lower-priced options: semis and apartment condo.
As mentioned, across the board the number of sales transactions were down for all housing types but when it comes to selling prices:
Detached +1.8%, average price of $1.3mil
Semi-Detached +17.2%, average price of $1.06mil
Townhouse -2.9%, average price of $740k
Condo apartment +7.0%, average price of $595k
Past financing approval changes and rate increases have forced some buyers down a notch: the semi rather than the detached, the more affordable condo over anything else; in taking a look at third quarter condo results in the city we see sales transactions just a hair under the level of Q3 2017, but prices were +10% this year over last.
The Bank of Canada has just wrapped 2018 with no further rate increase (the next decision is scheduled for January 9, 2019) and some are making noises that the government should look at relaxing the stress test rules given said changes did slow the market but I wouldn’t hold out for that.
December of course is typically slower, we are, quite rightly, focusing on other joys in life, but then again there is less competition on both sides if you’re actively considering!