After a strong year for Greater Toronto Area (GTA) real estate in 2017, 2018 saw declines across the board for home sales, listings, and average selling price. A new report from the Toronto Real Estate Board reveals pronounced declines in these categories, which is being partially attributed to increased borrowing costs as well as the new mortgage stress test.
A total of 77,426 residential transactions were recorded in 2018, representing a drop of 16.1% when weighed against the 92,263 sales reported in 2017. Similarly, new listings entered into the MLS system dropped by 12.7%, with 155,823 recorded during 2018. Selling prices also took a hit, though not as much as transactions and listings, falling 4.3% year-over-year to $787,300.
“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. Price growth was strongest for less-expensive home types, as many home buyers sought more affordable homeownership options,” reads a statement issued by Jason Mercer, TREB’s Director of Market Analysis and Service Channels.
Despite these declines, home sales actually increased slightly within Toronto proper. Certain market segments within the GTA performed better than others through 2018, with condominium apartment sales leading the pack, increasing by 7.8% year-over-year.
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