Toronto home sales down 44.6% year over year in January

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The Toronto Regional Real Estate Board says January home sales were down 44.6% from the same month a year ago, which is in line with expectations as the number of sales and the average selling price were similar to those of December 2022.

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January sales totaled 3,100, down from 5,594 a year earlier, while the average selling price fell 16.4% to $1.04 million, the impact of higher borrowing costs continuing to affect the housing market.

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New listings fell 3.7% year over year to 7,688, but were up from 4,074 in December, while active listings were up 124.6% from Last year.

The Bank of Canada last week announced a rate hike of a quarter of a percentage point, taking its key rate to 4.5%, while signaling that it is ready to suspend hikes for the time being.

Paul Baron, president of the real estate board, said in a press release that this pause, coupled with sales and home prices appearing to find some support recently, could encourage some buyers to move away from the sidelines in the coming months.

Real Estate Board chief market analyst Jason Mercer said while short-term borrowing costs rose again in January, medium-term negotiated mortgage rates are actually starting to fall, a trend that , he says, will continue and contribute to affordability in 2023.