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Cindie Carr-Harris
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Bosley Real Estate Ltd., Brokerage
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TORONTO REAL ESTATE BOARD JANUARY MARKET WATCH
Thursday, 08 February 2018, 04:40:00 PM

TORONTO, ONTARIO, February 6, 2018 – Toronto Real Estate Board President Tim Syrianos announced

that Greater Toronto Area REALTORS® reported 4,019 residential transactions through TREB’s MLS® System

in January 2018. This result was down by 22 per cent compared to a record 5,155 sales reported in January

2017.

The number of new listings entered into TREB’s MLS® System amounted to 8,585 – a 17.4 per cent increase

compared to 7,314 new listings entered in January 2017. However, it is important to note that the level of

new listings was the second lowest for the month of January in the past 10 years.

“TREB released its outlook for 2018 on January 30th. The outlook pointed to a slower start to 2018,

especially compared to the record-setting pace experienced a year ago. 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 home buyers find their footing relative to the new OSFI-mandated stress test for mortgage

approvals through federally regulated lenders,” said Mr. Syrianos.

The MLS® Home Price Index Composite Benchmark was up by 5.2 per cent year-over-year. This annual rate

of growth was driven by the condominium apartment market segment, with double-digit annual growth

versus the single-family segment, with prices essentially flat compared to last year. The overall average

selling price was down by 4.1 per cent year-over-year to $736,783. This decline was weighted toward the

detached segment of the market. In the City of Toronto, the average selling price was up for all home

types except for detached houses.

“It is not surprising that home prices in some market segments were flat to down in January compared to

last year. At this time last year, we were in the midst of a housing price spike driven by exceptionally low

inventory in the marketplace. It is likely that market conditions will support a return to positive price

growth for many home types in the second half of 2018. The condominium apartment segment will be the

driver of this price growth,” said Jason Mercer, TREB’s Director of Market Analysis.

“With the City of Toronto’s Executive Committee meeting today to make recommendations on the City’s

2018 Budget, City Councillors would be wise to note the vast difference between last January’s real estate

market and this January’s, given the City’s inadvisable reliance on the Municipal Land Transfer Tax. The

amount of revenue that the City generates from this tax goes up and down with the real estate market.

The last year should be a wake-up call for City Council. They should heed the City Manager’s ongoing

warnings of over-reliance on this tax. The Land Transfer Tax is not a good way to fund municipal services,”

said Syrianos.

The revenue generated by the Municipal Land Transfer Tax is based on the number of real estate

transactions and the value of those transactions. When the MLTT was first implemented in 2008, it made

up less than 2% of the City’s operating budget. Today, it makes up 7%, a 250% increase.

 

 

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