Despite the drop in sales, home prices climbed 1.6 per cent annually to $485,328.
The report also noted that condo resale transactions sharply declined, taking a 25.5 per cent hit across the GTA. Condo prices took a 2.3 per cent drop in the GTA with the City of Toronto experiencing the most significant decrease, almost 4 per cent year-over-year.
TREB President Ann Hannah attributed the decline to stricter mortage lending guidelines which include a reduced maximum amortization period and a purchase price ceiling of $1 million for government insured mortgages. These changes to mortgage rules have prompted some buyers to move to the sidelines.
“This situation has been exacerbated in the City of Toronto because the additional upfront Land Transfer Tax takes money away from buyers that otherwise could be used for a larger down payment,” Hannah explained in a press release.
Here are a few more notable numbers from the TREB report:
- There were 2,308 resales in the City of Toronto with the average price sitting at $517,866.
- There were 3,485 resales in the rest of the GTA (the 905 area) with an average price of $463,779.
- The average condo price in the City of Toronto was $350,540 (down 3.9 per cent).
- The average condo price in the 905 was $279,483 (up 2.5 per cent).
- The average price of a detached home was $741,480 in the City of Toronto (down 3.8 per cent), $556,745 in the 905 (up 3.5 per cent).
