The pre-holiday cool-off continues with all home types posting steep sales declines, both on a monthly and yearly basis.
Freehold detached homes for sale fell 51 per cent from the same week in November, and are softer compared to last year’s activity by 45 per cent. Semi-detached home sales are also down 40 per cent from October, and 9 per cent from 2017. Meanwhile, Toronto townhouses fell 47 per cent and 58 per cent, respectively. Condos posted the smallest monthly decline at 19 per cent, though activity is still 11 per cent lower than what it was last year.
While a seasonal decline is typical in the final months of the year, 2018’s year-over-year drop is also impacted by the mortgage rule-fueled rush that occurred late 2017. Last year buyers rushed to secure home financing before the new mortgage stress test was implemented in January. This led to a busier-than-usual winter real estate season. With no such policy change on the horizon, we should see a typical wind-down for the 2018 market before things pick back up for the January mini-rush.