On January 30th TREB released its outlook for this year, which pointed to a slower start to 2018. This is especially true for the reported 4,019 residential transactions through TREB’s MLS® System in January 2018, which is a number lower by 22 per cent compared to the record-setting pace experienced a year ago, with 5,155 sales. But as Toronto Real Estate Board President Tim Syrianos says:
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.
The MLS® Home Price Index Composite Benchmark was up by 5.2 per cent year-over-year, driven mostly by the condominium apartment market segment.
The overall average selling price was $736,783, which is down by 4.1 per cent. This decline was weighted toward the detached segment of the market. In the City of Toronto, the average selling price was up for all home types except for detached houses.
Jason Mercer, TREB’s Director of Market Analysis, explains:
It is not surprising that home prices in some market segments were flat to down in January compared to last year. At this time last year, we were in the midst of a housing price spike driven by exceptionally low inventory in the marketplace. It is likely that 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.