Tight Toronto housing market pushes prices to record highs with biggest gains in three years

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‘Expect further acceleration in 2020 if there is no relief on the supply front’

Home sales dropped in Toronto in December, but prices continued to rise as demand outstripped a dwindling supply of units available for purchase.

Toronto’s housing market has tightened considerably over the past year as buyers took advantage of lower interest rates and adjusted to mortgage stress tests, but there are fewer homes to be bought. In December, the sales to new listings ratio — a measure of market balance — reached 1.25, pointing to a market tilted heavily in favor of sellers.

 

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