Home sales in the Greater Toronto Area (GTA) for February fell 35 percent compared to last year. New listings were up 7.3 percent from a year ago. The benchmark price edged higher by 3.2 percent year-over-year for the market as a whole, driven by strength in townhouses and apartments, which were up 7.5 percent and 18.8 percent respectively. Single-family attached and detached homes fell slightly in price.
The slow start to the year is no surprise for board president Tim Syrianos.
The latest blow to Toronto housing comes from the federal regulator, Office of the Superintendent of Financial Institutions (OSFI), requiring borrowers to qualify for uninsured mortgages at a rate 2 percent higher than the contract rate.
“Expect stronger price growth to continue in the comparatively more affordable townhouse and condominium apartment segments,” said Jason Mercer, the board’s director of market analysis, about the upcoming spring and summer months.
The average sales price for February in the GTA was $767,818—down 12.4 percent year-over-year. But early 2017 saw sharp rises in Toronto housing prices, leading to the province’s Fair Housing Plan, which included a 15 percent foreign buyer’s tax. The board’s press release notes the February average sales price is still 12 percent higher than from two years ago, which implies an increase well above inflation.
