Detached house prices in Toronto took a dive last month
Home sales were down by 22 per cent in January compared to the year previous at 4,019 across the entire GTA, according to the Toronto Real Estate Board's monthly market figures report.
The average selling price, however, was actually up for (almost) all types of homes in the region over the same period of time, thanks in large part to the ongoing condo boom.
The only exception – and it's a crucial one – pertains to detached houses.
Single-family detached homes were worth 9.1 per cent less this January compared against last January, dragging the entire market's overall average selling price down by 4.1 per cent to just $736,783.
Of course, as TREB market analysis director Jason Mercer points out, it's all relative.
"It is not surprising that home prices in some market segments were flat to down in January compared to last year," he said in today's report. "At this time last year, we were in the midst of a housing price spike driven by exceptionally low inventory in the marketplace."
Mercer says that market conditions will likely support an increase in value for most homes during the second half of this year – but, again, condos will be the primary driver of this price growth.
"As we move through the year, expect the pace of home sales to pick up," said TREB president Tim Syrianos in the report, "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."
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