Toronto real estate is seeing lower prices, less sales, and more inventory for detached homes across the city.
Toronto detached real estate demand is continuing to soften into the winter slump. Toronto Real Estate Board (TREB) numbers show that prices declined for a sixth month in a row. Last year’s record shortage of inventory is starting to look a little more balanced, as frenzied buyers start to disappear. Lower prices are the expected reaction to declining sales, and an increase of inventory.
Toronto Detached Real Estate Prices Are Tapering Gains
The benchmark price of a detached home is up, but tapering gains quickly. The benchmark for a detached home across TREB was $915,600 in November, down 0.60% from the month before. This represents a 4.04% increase compared to the same time last year.
The price of a benchmark detached in the City of Toronto proper was $1,088,200, literally unchanged to the dollar apparently. This represents a 2.86% increase compared to the same time last year. These are actually pretty solid gains, especially considering that Ontario’s CPI has dropped to 1.3%. However, it’s significantly below the massive double digit gains we were experiencing at the peak this spring.
In terms of average sale prices, we’re seeing those decline significantly. The average sale price for a detached in TREB was $996,527, a 5.8% decline from the same time last year. Breaking that down, the 416 saw an average detached sale price of $1,276,184, a 5.1% decline from the year before. The 905 saw an average detached sale price of $898,605, a 6.2% decline compared to last year.
Toronto Detached Real Estate Sales Declines By Over 19%
Toronto real estate saw a significant decline in sales, but detached units were over double other segments. The whole TREB region saw 3,131 detached sales, a 19.1% decline compared to last year. Breaking that down, the 416 saw 812 of those sales – an 18.9% decline compared to last year. The 905 saw 2,319 of those sales, a 19.2% decline. You can’t really make a conclusion about sales without looking at listings however.
Detached Inventory Is Over 146% Higher
People have can stop complaining about a lack of detached inventory. New detached listings across TREB reached 7,420, a 45.23% increase compared to the same month last year. Active detached listings, which are the total number of listings remaining at month end, reached 10,600. That’s a massive 146.74% increase compared to last year. To give some perspective, there was more detached homes for sale in Toronto, than there was total inventory in Vancouver. It’s a lot more inventory than last year, no matter how you cut it.
Two things worth noting in this report, the rise of inventory and the decline of sales. Last year the Greater Horseshoe (including Toronto) started hitting record lows of inventory. This almost certainly meant we would see a spike in inventory. Although more than doubling in the detached segment is a very big jump. Even though it was expected, a significant decline in sales normally doesn’t accompany a rise of inventory. Lower sales and more inventory naturally weakens prices, as competition decreases. As long as this trend continues, it’s difficult to see prices resume a climb.