According to the Toronto Real Estate Board (TREB), there were a total of 77,426 residential transactions through the TREB’s MLS System in 2018, representing a 16.1 per cent decline compared to the 92,263 home sales reported in 2017. The number of total new listings also dipped 12.7 per cent over the same period to 155, 823.
Across all home types, the overall average home price fell 4.3 per cent year-over-year to $787,300.
Home prices climbed slightly in the City of Toronto, but fell in the surrounding GTA regions. This is largely due to the fact that the condominium segment, which accounted for a large proportion of sales in the City of Toronto, performed better from a pricing perspective than the detached segment. The average price for condominium apartments in the GTA climbed 7.8 per cent on an annual basis.
“Higher borrowing costs coupled with the new mortgage stress test certainly prompted some households to temporarily move to the sidelines to reassess their housing options,” said Garry Bhaura, TREB president, in a press release. “With this said, it is important to note that market conditions were improved in the second half of the year, both from a sales and pricing standpoint.”
“After spiking in 2017, new listings receded markedly in 2018. In many neighbourhoods, despite fewer sales from a historic perspective, some buyers still struggled to find a home meeting their needs. The result was a resumption of a moderate year-over-year pace of home price growth in the second half of the year,” added Jason Mercer, TREB’s director of market analysis and service channels. “Price growth was strongest for less-expensive home types, as many home buyers sought more affordable home ownership options.”