Real estate prices expected to rise in 2020
Home sales fell just seven per cent short of the market's peak in 2016-2017 over the last 12 months.
According to a report from Zoocasa, while November to December saw a slight decrease in sales--which were down 0.9 per cent--sales were up 22.7 per cent compared to December 2018.
Additionally, as a result of MLS listings declining by 1.8 per cent in December, the average home price nationally rose 9.6 per cent to $517,000.
However, while sales were up on average across the country, the GTA saw a decrease.
Despite a slight decrease in sales in December, the fact the number of new units is close to the lowest it's been in a decade, combined with the fact available listings are at a 12-year low has created a sellers market in the GTA.
In December, the sales-to-new-listings ratio hit 66.9 per cent, the highest it's been since 2004.
The ratio is calculated by dividing the number of home sales by the number of new listings brought to market--a range of 40 to 60 per cent indicates a balance, while scores below and above represent buyer's and seller's markets respectively.
Additionally, the lack of the number of homes available is driving prices up, a trend that is projected to continue in 2020.
"Home price growth is picking up in housing markets where listings are in short supply. Meanwhile, the mortgage stress-test continues to sideline potential home buyers where supply is ample," Jason Stephen, president of CREA, said in a news release.
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