Toronto House Prices Rise 3.5% In November From A Year Ago As Inventory Declines

The inventory of homes available for purchase in the Greater Toronto Area fell sharply in November – a sign that competition among buyers could increase in the coming months, according to the Toronto Real Estate Board (TREB).

New listings of properties available for purchase in Greater Toronto declined 26.1% year-over-year in November, according to data released by TREB. Total active listings fell 9.8% to 16,420 units in the month.

Sales also fell sharply as 6,251 properties traded hands in Novmber, marking a 14.7% downturn from the previous year. TREB noted in a release that activity in November 2017 was "distorted" as buyers rushed to beat the new stress-test rules that took effect in January 2018.

The average selling price across Greater Toronto in November was $788,345, marking a 3.5% increase from a year earlier, but a modest drop from October's average price of $807,340.

"New listings were actually down more than sales on a year-over-year basis in November," said TREB President Garry Bhaura in a news release. "This suggests that, in many neighbourhoods, competition between buyers may have increased. Relatively tight market conditions over the past few months have provided the foundation for renewed price growth."