The number of homes available for sale in Caledon has gone up 10% since May 2011. In contrast, the number of sales has only increased 3.3%. So there is now an inventory of more than three month’s supply of homes on the market. This is still favourable for sellers, but the supply is growing so there is more and more competition among homes available for sale. This may account for the flattening of the median sale price, although a change in the mix of homes sold may be partially responsible.
The Toronto Real Estate Board has introduced a new way of measuring home prices that levels out these differences in the types of homes being sold. Based on this new system, the “benchmark” home price in Caledon has actually increased 4.75% over the past year. Moving forward this new method will provide a more accurate comparison for price changes year over year.