Home sales in Canada’s two largest markets in November continued their downward trends that started in May, but the rates of month-over-month declines are easing..Greater Vancouver Area.The Real Estate Board of Greater Vancouver (REBGV) reports home sales reached 1,614 last month, a year-over-year decrease of 52.9% and 15.2% down from the 1,903 sales in October..“With the most recent core inflation metrics showing a stubborn reluctance to respond significantly to the furious pace of rate increases, the Bank of Canada may choose to act more forcefully to bring inflation back toward target levels,” said Andrew Lis, REBGV’s director, economics and data analytics. .“While it’s always difficult to predict what the bank will do with certainty, this persistent inflationary backdrop sets up the December 7 rate announcement to be yet another increase, making holiday-season home purchases something many people may end up foregoing this year.” .There were 3,055 new listings of all property types, a 23% decline from the 3,964 homes listed in November 2021 and a 24% decrease from October 2022 when sellers listed 4,033 homes. .A decrease in listings in November from October, in all markets across the country is to be expected, as buyers and sellers pause over the colder months..“Heading into 2023, the market continues the trend of shifting toward historical averages and typical seasonal norms,” Lis said..“Whether these trends continue will depend on looming economic factors and forthcoming housing policy measures on the horizon, which hold the potential to reignite uncertainty in our market.” .From a long-term structural standpoint, he the current pace of listings and available inventory remain tight when considered against a backdrop of continued in-migration to the province. With the increase in federal immigration targets, the state of available supply in our market remains one demand surge away from renewed price escalation, despite the inflationary environment and elevated mortgage rates..The sales-to-active listings ratio for single-family homes is 13.2%; for townhomes, 19.7%; and 20.8% for apartments. .The MLS Home Price Index composite benchmark price for all properties in Metro Vancouver is $1,131,600, the highest in the country, a .6% decrease from November 2021, a 10.2 % decrease over the last six months and a 1.5 % decrease from October 2022. .Single-family home sales were 486, down from 575 in October. The benchmark price was $1,856,800, compared to $1,892,100 in October.Sales of apartment homes reached 847 in November 2022, down from 995 sales in October. The benchmark price reached $720,500 compared to $727,100 in October.Attached home sales in November 2022 were 281 a drop of the 333 sales the previous month. The benchmark price of an attached unit was $1,027,900, down slightly from $1,043,600 in October..Greater Toronto Area .The Toronto Region Real Estate (TRREB) calculates 4,544 homes were completed in November, a year-over-year decrease of 49%, but similar to the 4,961 sales in October..Low inventories have supported average selling prices at the $1.08 to $1.09 million mark since August..“Selling prices declined from the early year peak as market conditions became more balanced and homebuyers have sought to mitigate the impact of higher borrowing costs," said TRREB chief market analyst Jason Mercer.."With that being said, the downward price trend experienced in the spring has come to an end.".Mercer said selling prices have flatlined alongside average monthly mortgage payments since the summer. .New listings declined on both a year-over-year basis and month-over-month basis, reaching 8,880..Supply in the GTA could soon become a major issue, said TRREB President Kevin Crigger..“Increased borrowing costs represent a short-term shock to the housing market," said Crigger.."Over the medium-to-long-term, the demand for ownership will pick up strongly.".This is because a huge share of record immigration will be pointed at the GTA and the Greater Golden Horseshoe in the coming years, and all of these people will require a place to live, with the majority looking to buy. .“The long-term problem for policymakers will not be inflation and borrowing costs, but rather ensuring we have enough housing to accommodate population growth," he said.."We have seen a lot of progress this year on the housing supply and related governance files such as the More Homes Built Faster Act.”
