Toronto home sales down 18.3% from record 2016

Home sales in Toronto last year were down 18.3% from the record set in 2016, the Toronto Real Estate Board (TREB) announced Thursday. The average selling price increased by 12.7% over the same period.

After record sales in the first quarter of 2017, the market cooled in the second and third quarters after the Ontario government introduced the Ontario Fair Housing Plan (FHP), which taxed foreign buyers. Then, sales picked up in Q4, possibly due in part to new OSFI stress test guidelines that came into force Jan. 1, 2018, a TREB release said.

The average price for the 92,394 sales in 2017 was $822,681. The increase was driven by “extremely tight market conditions” at the start of the year, the release said. More listings and fewer sales over the rest of the year led to slower price growth.

In December, sales totalled 4,930, down from 5,305 in 2016, TREB said. The average price for the month was $735,021, up from $730,125.

Jason Mercer, TREB’s director of market analysis, said home price growth over 2017 varied depending on the type of home.

“The detached market segment—the most expensive on average—experienced the slowest pace of growth as many buyers looked to less expensive options. Conversely, the condominium apartment segment experienced double-digit growth, as condos accounted for a growing share of transactions,” he said in a release.

More information about the Toronto market will come on Jan. 30, when TREB releases its Market Year in Review and Outlook Report.

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