Home sales in Toronto just fell to their lowest point in 10 years
Less and less people are buying houses in the GTA, according to analysts, thanks to higher interest rates, stricter mortgage rules and a general lack of affordable homes on the market.
Newly-released data from the Toronto Real Estate Board shows that the number of residences sold in and around the city declined by 16.1 per cent last year, from a total of 92,263 sales in 2017 to just 77,426 in 2018.
Overall home prices, on the other hand, were up very slightly in the City of Toronto itself, largely on account of condos.
Sales for 1.5 M plus down over 40 percent...— Toronto Housing Market Facebook Group (@Baha64914330) January 4, 2019
TREB says that condos "performed better from a pricing perspective than the detached market segment," with an average increase of about 7.8 per cent year-over-year across the GTA.
Still, the average selling price for all home types combined dipped by 4.3 per cent in 2018 to an average of $787,300. New listings were down over the same period of time by 12.7 per cent.
"In many neighbourhoods, despite fewer sales from a historic perspective, some buyers still struggled to find a home meeting their needs," said TREB's Director of Market Analysis, Jason Mercer, on Friday.
"Price growth was strongest for less-expensive home types, as many home buyers sought more affordable home ownership options."
Like renting condos.
TREB president Garry Bhaura, like most real estate experts, blames the home sales decline, at least in part, on "higher borrowing costs coupled with the new mortgage stress test."
"With this said," he added, "It is important to note that market conditions were improved in the second half of the year, both from a sales and pricing standpoint."
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