Toronto home sales drop 22% in January but expected to pick up through the year
It was a slower start to the year in real estate, as Toronto home sales dipped 22% in January compared to January 2017.
The Toronto Real Estate Board (TREB) reported 4,019 residential transactions in January, compared to a record 5,155 sales in January 2017.
Meanwhile, listings increased by 17.4% in the GTA, but, TREB notes that the level of new listings was the second lowest for the month of January in the past 10 years.
TREB forecasted a slower start to the year in their 2018 outlook, saying that sales will be up through the late spring and summer months.
“As we move through the year, expect the pace of home sales to pick up, as the psychological impact of the Fair Housing Plan starts to wane and home buyers find their footing relative to the new OSFI-mandated stress test for mortgage approvals through federally regulated lenders,” said TREB president Tim Syrianos.
In the GTA, the overall average selling price was down by 4.1% year-over-year to $736,783. This decline was weighted toward the detached segment of the market, according to TREB. In the City of Toronto, the average selling price was up for all home types except for detached houses. Still, the average cost of a detached home in Toronto is $1,283,981. Condo prices were up 15.1% in Toronto, and now averages $543,279.
“It is not surprising that home prices in some market segments were flat to down in January compared to last year,” Jason Mercer, TREB’s Director of Market Analysis, said. “At this time last year, we were in the midst of a housing price spike driven by exceptionally low inventory in the marketplace.”
Mercer said that it’s likely market conditions will support a return to positive price growth for many home types in the second half of 2018.
“The condominium apartment segment will be the driver of this price growth,” he said.