The Toronto Real Estate Board (TREB) confirmed that both the number of home sales and the prices of sold homes plunged in March, as compared to results from one year earlier.
The average home price dropped from $915,126 in March 2017 to $784,558 this past March, while the number of sales dropped to 7,228, a 39.5 percent year-over-year decline from the March 2017 record of 11,954 residential transactions. Detached home sales, which generally represent the highest price points in a given area, declined much more than other home types.
TREB President Tim Syrianos explains, “The effects of the Fair Housing Plan, the new OSFI-mandated stress test and generally higher borrowing costs have prompted some buyers to put their purchasing decision on hold.”
Jason Mercer, TREB’s Director of Market Analysis, adds, “Right now, when we are comparing home prices, we are comparing two starkly different periods of time: last year, when we had less than a month of inventory versus this year with inventory levels ranging between two and three months. It makes sense that we haven’t seen prices climb back to last year’s peak. However, in the second half of the year, expect to see the annual rate of price growth improve compared to Q1, as sales increase relative to the below-average level of listings.”
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