November Makes a Rise in Sales
The November housing market saw a rise in sales, particularly in the lower price ranges. There was a 15% increase in sales over last year in the past month. Most of the sales activity occurred in homes priced under $500,000.
The last time that sales activity rose to long-term averages was in October 2016, when the stress test for high-ratio loans was first announced. Some are suggesting that the pending mortgage rule changes may be contributing to the increase in sales activity.
The largest gains in the detached sector were in the $300,000 - $399,999 price range, while the apartment and attached sector saw the largest gains among the homes priced below $300,000.
The rise in sales relative to new listings improved this month, helping ease inventory levels over the previous month and keeping the months of supply relatively stable. However, the amount of supply relative to the sales in the market remains elevated. This continues to weigh on prices.
Citywide benchmark prices totaled $436,700, 0.50 per cent below last month, but 0.46 per cent above last year’s levels. Both median and average prices recorded a more significant decline compared to last year. This should not come as a surprise, as more sales in the lower price range this year compared to last November would cause a more pronounced drop in average and median prices.
For the entire CREB® forecast, visit creb.com.