By: Tim Syrianos, President of TREB
The figures for the housing market in December have been released by TREB. The figures show that there were 92,394 sales in 2017 via the TREB MLS® system, which is 18.3 percent lower than the record in 2016.
Record sales in Q1 were followed by a decline in Q2 and Q3 after the Fair in Ontario Housing Plan (FHP) was announced. The pace of sales increased in the fourth quarter, when the impact of the FHP began to decline, and some buyers reportedly reported their home purchases in response to the new OSFI stress test guidelines as of January 1, 2018.  A large part of the sales volatility in 2017 was brought about by government policy decisions. Research by TREB, the provincial government and Statistics Canada showed that buying abroad was not an important driver of sales in the GTA. The Ontario Fair Housing Plan, which included a foreign buyer’s tax, however, had a clear psychological impact on the market. Looking ahead, government policy could continue to influence consumer behavior in 2018 as the changes to the Federal Mortgage Loan Directives take effect.
The average sales price for 2017 as a whole was $ 822,681 – an increase of 12.7 percent compared to 2016. This annual growth was mainly driven by extremely tight market conditions during the first four months of the year. In the last two-thirds of 2017, fewer sales combined with higher listings resulted in lower price growth. In December, the MLS® Home Price Index (HPI) composite benchmark increased by 7.2 percent year-over-year and the average sales price increased 0.7 percent year-on-year.
TREB will have much more to say about the upcoming year on 30 January, when we will publish our third annual market overview and Outlook report. The report contains prospects for house sales and prices; new results of Ipsos consumer research with regard to purchase intentions, including insights into new guidelines for federal mortgage lending; new research on housing supply options around the missing middle & # 39; and important new reports on the movement of people and goods throughout the GTA.
If you have any questions, talk to a Toronto Real Estate Board Professional Member Realtor for further assistance and guidance. Visit for updates on the real estate market TREBhome.com . If you are interested in commercial real estate, please contact a TREB Commercial Professional Member Realtor by visiting trebcommercial.com .