Sales activity in October improved by nearly 10 per cent compared to last year, driven mostly by improvements for apartment and attached product.
New listings also eased, which helped reduce inventory levels and the oversupply in the market. Despite the move to more balanced conditions, the market remains oversupplied and prices continue to remain below last year’s levels.
With job growth occurring in our non-traditional sectors and often at a different pay scale, employment has shifted in the city. This creates the shift to a more affordable housing product. The amount of oversupply is rising in the higher end of the market, as supply cannot shift enough to compensate for the reductions in demand. This is likely causing divergent trends in pricing and preventing prices from stabilizing across the city.
This is a market where signs of improvement are not consistent across all product types and price ranges. Improvements in sales are occurring in the lower price ranges across all product types. This is not yet translating into price shifts, as persistently elevated supply levels continue to place downward pressure on prices.
As of October, citywide unadjusted benchmark prices were $422,900, just below last month’s levels and two per cent lower than last year’s levels.