Detached houses in the 905 dragged down the average property price in the Greater Toronto Area this January, according to numbers released by the Toronto Real Estate Board (TREB).
Detached houses were down 9.1 per Cent overall to $970,823 from last January, but most of that decrease was seen outside the City of Toronto. The 416 saw detached houses decrease in price just 3.9 per cent to $1,283,981, while the 905 saw a full 12 per cent decrease to $879,048.
Contrast this with condos, which saw double-digit gains across both the 416 and 905 for an overall 14.6 year-over-year per cent jump. Condos increased 15.1 per cent in the 416 to an average selling price of $543,279 and 11.3 percent in the 905 to $421, 927.
Since more detached houses sold than any other property type, it weighted down the average, resulting in a year-over-year price decrease of 4.1 per cent.
That’s not much to worry about though since last January was a record-setting month. January 2017 had extremely low inventory, and the government had yet to introduce the Fair Housing Plan or tighten mortgage lending rules.
Tim Syrianos, TREB president, is bullish on the rest of 2018:
“As we move through the year, expect the pace of home sales to pick up, as the psychological impact of the Fair Housing Plan starts to wane and homebuyers find their footing relative to the new OFSI-mandated stress test for mortgage approvals through federally regulated lenders,” he says.
Moreover, detached houses are still experiencing a strong upward price trend — detached homes are up 14.2 per cent from January 2016 when the average price was $848,999. Prices appeared to have just calmed down from their peak.
Check out the infographic below to draw your own conclusions:
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You may also be interested in: Condos Were a Best Seller in 2017: Toronto Real Estate Infographic
Writer: Danielle Kubes
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