TREB reported 7,385 sales through the Toronto MLS in November, 14% more sales than November 2014, and setting another monthly sales record. The average sale price (across all housing types) climbed to $632,685, up 9.6% year-over-year. TREB’s HPI, which attempts to smooth out that average by weighting for size and type of property, was up 10.3%.
New listings surged by 10.4%, to 9,609 but, once again, the total number of active listings decreased. November inventory was just 13,454, down 8.4% from November 2014’s 14,717. I often compare the tight supply that confounds the current market to the relatively robust numbers pre-recession. For example, in November 2005 inventory was 20,273 (average sale price $341,177); in November 2006 it was 22,981 (average sale price $355,727). There’s more than just tight supply behind today’s numbers – population growth, investment demand, inflation and economic growth – but the supply issue exacerbates existing demand and contributes to rising prices. Unfortunately, I don’t see a resolution to that challenge any time soon.
The Toronto condo market had another very strong month. The number of sales in the 416 increased by 13.3%, while average price increased 5.4%, to $415,316.
As I said last month (and several times over the years), it should come as no surprise to anybody that new records are set quite frequently. The economy is strong (job creation in Toronto is well above the national average) and the population of Toronto continues to grow, two factors that will obviously contribute to demand for housing. Despite relatively low supply, demand has driven the pace of sales to an annual record. With December yet to complete, TREB has reported 96,401 sales through November – already the new record. Once December gets added we’ll most likely see 100,000 sales reported for the first time.
The market slows through December, as so many folks have busy holiday seasons. However, the market never stops. Last year, TREB reported 4,446 sales in December, just more than half of what we saw last month. That’s still about 1000 per week – nothing to sneeze at! So, if you are in the market, by all means prioritize your time for family and friends, but keep half an eye on the real estate market. You wouldn’t want to miss anything! 😉