The buyer's market continues. Though listings have eased to well under 8000 over the past few months, they are still at very high levels. Inventories and sales totalled 7,345 and 1,322 in October. This has resulted in months of supply of 5.6, above levels typical for this month.
Citywide benchmark prices totalled $426,300 in October, resulting in a year-over-year decline of 2.9 per cent. As we enter into a winter market, it's likely some listings will be pulled and/or further price reductions will occur on "stale listings". I might add that this is typical of the season and more cyclical than a suggestion that the market has further decreases ahead.
Rising interest rates may also put downward pressure on the first time buyers in particular, and therefore affect those purchases common to that market. It bodes very well for those with cash on hand to take advantage of a market that is currently rock bottom. One factor that may lead to increased sales in the near future is the fear of further interest rate hikes.
For each of the property types, sales activity has improved in the lower price ranges, leaving most of those segments relatively balanced. However, the upper end of the ranges has seen significant gains in supply compared to demand, which is likely having more of an impact on prices in those ranges.
- Detached home sales in October totalled 829 units for a year to date decline of 15%.
- but on a year-to-date basis, prices remain only one per cent below last year’s levels.
- According to the monthly report (attached) as of October, year-over-year prices have eased across all districts, with the largest declines occurring in the North East, North West, South and South East districts. This is likely a result of added competition from the new-home sector.
- Year-to-date apartment sales are nearly seven per cent below last year with 7 month supplies on the market., Condominium prices remain a whopping 14 per cent below 2014 highs. Declines occurred across all districts, with the steepest declines occurring in the North East, East and South districts.
- The attached sector has recorded year-to-date sales of 15 per cent below last year and 14 per cent below long-term averages. Meanwhile, despite recent easing in new listings, October inventories are the highest level on record. The oversupply is affecting both the semi-detached and row sectors, which have seen prices trend down over the past 5 months.
- As of October, semi-detached prices were $403,400, one per cent lower than last month and nearly three per cent lower than last year. Despite recent declines, year-to-date citywide prices remain relatively flat compared to last year. This was most due to gains in the City Centre, North East and East districts offsetting declines in the North West, South and South East.
The struggle between sellers who firmly believe prices have bottomed, and buyers who are either opportunists or still sitting on the fence continues. It won't likely stop throughout the winter.