Ups and Downs in November
Posted By: Rachel Kavanagh
December 5, 2018
Ups and Downs in November – The month of November added another layer to the foundation for renewed price growth. Greater Toronto Realtors reported 6,251 transactions in November, a 14.7% decline over the same time last year and a 16.6% decline over October 2018. The City of Vaughan experienced the highest number of sales out of the nine communities in York Region.
Last year we saw a temporary upward shift in demand as the market was distorted by the looing OSFI-mandated stress test at the end of 2017.
The overall average sale price for all home types in the Greater Toronto Area remained 3.5% higher than November 2017 at $788,345. When compared to October 2018 we noticed a decline of 2.4% to the average sale price. However, October did have the 2nd highest average sale price for the year. Home types such as condominiums and semi-detached homes have been linked to stronger rates of price growth over the past few months due to their affordability.
Markham and Stouffville both had different results when looking at the average sale price for detached homes. Markham is selling the average detached home at $1,190,525, a 9% decline over October 2018. Stouffville encountered a 21% increase and is averaging $1,179,448 per transaction. However, it is taking nearly 1.5 times longer to sell a home in Stouffville than it is in Markham.
Overall, new listings in November were down by 26.1% over the same period last year to 10,534. This suggests that, in many neighbourhoods, competition between buyers may have increased and initiated price growth.
The luxury home market continues to operate at a different level from the rest of the Greater Toronto Area. Since the beginning of 2018, there have been only 24 sales of detached homes in Markham. The average sale price has been $3,511,133 with the highest sale being $5,600,000. In Stouffville, there have been only 4 sales all year. The highest sale being $4,600,000.
WHAT DOES IT ALL MEAN?
As we come to the end of 2018, the Bank of Canada has decided to hold interest rates at 1.75% due to the Alberta government restricting oil production and the closing of the General Motors plant in Oshawa. When negative news is announced by the media it can have a psychological effect on buyers and sellers. Fear and hesitation can set in because of economic uncertainty.
The market has maintained a steady pace throughout 2018 and will continue to do so until the end of the year. Buyers continue to have ample choice in today’s market. If you are looking for a home that is more affordable, don’t wait. As those homes are moving quickly.
Ups and Downs in November written by Benczik Team Realty
For more information on your home, visit our website and get a free home evaluation to ensure you get the best seller’s service! With experience around Markham, Stouffville, Unionville, and all of York Region, Benczik Team Realty works to serve you in the best way possible! Act now, and don’t miss out on this ever-growing market.