(Toronto) Residential property prices in Greater Toronto appeared to stabilize in January, after plummeting amid slowing sales since the spring, the area’s real estate board said Friday.
The Real Estate Board’s home price index was $1,078,900 last month, down slightly from December’s $1,081,400.
The average home price followed the same trend reaching $1038,668, little changed from December’s $1051,031.
This decline follows several months of steady declines. Prices are now down nearly 20% from their spring high and 16.4% from January 2022.
The fall was largely attributed to rising interest rates. These tend to move in parallel with mortgage rates, which has weighed on buyer sentiment.
This lack of buyer enthusiasm has resulted in a slowdown in home sales for several months already. In January, sales in the Toronto area came in at 3,100, down 44.6% from 5,594 transactions in the same month a year ago when the market was moving at a blistering pace and bidding wars were the norm.
New listings for sale fell 3.7% year over year to 7,688 last month, up from 4,074 new listings in December. The number of active listings increased by 124.6% compared to last year.