BUSINESS
02/06/2020 10:34 EST

Average Toronto-Area Home Expected To Cost Buyers $900K This Year

The board says many buyers have been affected by the mortgage stress test.

Roberto Machado Noa via Getty Images
A Tridel sign is seen here as a crane works on a condo development in Toronto in 2017. The Toronto Regional Real Estate Board says price and sales growth could come from condos this year.

TORONTO — The Toronto Regional Real Estate Board says January home sales were up 15.4 per cent from the same month last year, while it expects home sales for the year to rise about 10 per cent overall.

January saw 4,581 home sales, up from 3,968 last year, while the average sales price of $839,363 was up 12.3 per cent compared with a year earlier.

Looking ahead at the year as a whole, the real estate board is forecasting about 97,000 home sales, up from 87,825 last year.

It expects the average selling price to run at about $900,000 for the year, up nearly 10 per cent from the average of $819,319 last year as new listings are expected to be flat to down.

The board says both price and sales growth are likely to be concentrated in the semi-detached, townhouse and condo markets that are somewhat more affordable, but that the average price could rise further if detached home prices see a similar pace to other home types.

It says that many buyers have been affected by the mortgage stress test, pushing them to change expectations on home price, type or location, as well as to look to alternate lenders.

This report by The Canadian Press was first published on Feb. 6, 2020.

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