Greater Toronto real estate agents have been dropping anecdotal evidence the market is firming. It might be true, according to the latest composite benchmark prices presented by the Toronto Regional Real Estate Board (TRREB). Home prices generally fell across the region, except in the most dense part—the actual City of Toronto. In the City, the price of a typical home actually climbed. One month isn’t enough to declare that a trend has changed, but it likely has the central bank sweating bullets.
Greater Toronto Real Estate Prices Fell, Just Not In The City
Greater Toronto real estate prices seem to have found a floor in some regions. The TRREB-wide composite benchmark fell 0.2% (-$2,500) to $1,078,900 in January. However, in the City of Toronto, the benchmark price climbed by 0.5% (+$5,100) to reach $1,067,000 in the month. While one month doesn’t make a trend, the data comes after Oakville-Milton single-family homes made a big jump higher in December. Not exactly the cooling expectations the Bank of Canada (BoC) had in mind for the market when it announced a pause.
Greater Toronto Real Estate Prices Are Still Down Significantly
Might not want to read too much into a single-month increase with prices still down significantly from last year. TRREB home prices are down 14.2% (-$178,400) from a year ago, while the City of Toronto is 10.2% (-$120,700) lower. For those curious, the rate of decline is still decelerating despite the month’s increase due to a base effect. Prices in January failed to rise as much as last year.
Greater Toronto Home Sales Had The Worst January Since 2009
Greater Toronto residential real estate sales through the MLS are getting weaker. Sales across TRREB fell 44.6% to 3,100 homes in January. Being roughly cut in half is as bad as it sounds, it was the fewest homes sold since 2009.