Home prices are expected to keep rising as the supply of new and active listings on the Toronto-area real estate market continues to dwindle, says the Toronto Real Estate Board (TREB).

Resale home prices rose 7.1 per cent year over year last month to a mean of $843,637 for all types of houses and condos. In the same period, the number of new listings fell 17.9 per cent, about 1,900 fewer than November 2018. Active listings plunged 27.7 per cent. New listings are down by about 3,000 this year to date.

November saw the strongest year over year price growth so far this year, said TREB on Wednesday.

“Increased competition between buyers has resulted in an acceleration in price growth. Expect the rate of price growth to increase further if we see no relief on the listings supply front,” said TREB chief market analyst Jason Mercer.

Detached homes led a 14.2 per cent overall increase in year over year sales last month — jumping 23.8 per cent in November and 18.5 per cent this year to date.

The price of a house with a yard rose 3.5 per cent in the region last month to an average $1.04 million. In the city of Toronto, the average price for a house was $1.4 million, up 4.9 per cent year over year.

Condo prices continued to rise — up 11.1 per cent regionwide — but the number of transactions was essentially flat, up only one per cent year over year. Condo prices are up 2.8 per cent to date this year.

TREB CEO John DiMichele said all levels of government must address the Toronto area’s housing supply problem in the coming year.

“In 2020, policy-makers need to translate their acknowledgment of supply issues into concrete solutions to bring a greater array of ownership and rental housing online,” he said.

Rents were also up this year to date — 5.6 per cent for a one-bedroom apartment and 4.5 per cent for two-bedroom units. The average one-bedroom leased for $2,210 this year to date, compared to $2,092 last year. A two-bedroom rental went for $2,885 this year, compared to $2,760 in 2018.

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