Major Market Segments All See Increases | Market Watch
Major Market Segments All See Increase – The winter weather may have come during November, but that did not slow down realtors. GTA Realtors reported 7,090 transactions in November – a 14.2% increase when compared to November 2018, but a 16.5% decrease when compared to October 2019. It is common to see a month-over-month decline in transactions towards the end of the year.
The average sale price for all home types in the GTA was $843,637, the second-highest average sale price this year. The November average sale price was 7.1% higher than the same period last year, while month over month, the average sale price was lower by 1%. In Markham, the average sale price for a detached home increased by 8% to $1,346,629. While in Stouffville, the average sale price for a detached home decreased by 2% to $1,051,896.
For November, sales and average sale prices were up year-over-year in all major market segments. In the 905-area code detached and townhomes observed the largest increase in sales. Detached homes received the largest year over year increase in sales with 27.8%, while townhouses were second with a 21.9% increase in sales. As for the average sale price, the condominium segment saw the largest increase at 12.2% year-over-year, followed by semi-detached homes at 7.3%.
In the 416-area code, semi-detached homes received the highest increase at 19.3%, while the highest increase to average sale price was the condominium segment at 10.9%.
Market conditions continued to tighten in November, with sales increasing and listings decreasing, the annual rate of price growth continued to accelerate. Active listings were down by 27.2%, while new listings were down by 17.9% year-over-year. It is not uncommon to see a regression in listings towards the end of the year. However, smart sellers will leave their homes on the market because as listings leave the market, active buyers will have less inventory to view.
The luxury market has come a long way from the beginning of 2019 to the end of November. In Markham, there have been 21 sales of luxury detached homes with an average sale price of $3,502,955, while 61 luxury homes continue to be available for purchase. In Stouffville, there have only been 2 sales over $3 million, while 19 properties remain available on the market.
What Does This All Mean?
On December 4, 2019, the Bank of Canada held its interest rate at 1.75% indicating that the economy has not been “stressed” enough to warrant a rate cut. The 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. Increased competition between buyers has resulted in an acceleration in price growth. Expect the rate of price growth to increase even further in 2020, if we do not see a steady increase in listings.
* Major Market Segments All See Increase written by Benczik Team Realty
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