January was a slow start to the year but we’re already seeing a 4.2% increase in the average sale price as the market comes to terms with the recent changes in real estate and mortgage regulations. The slow start can partly be attributed to the more stringent B20 regulations for uninsured mortgages resulting in reduced purchasing power for buyers.
However, when comparing to February 2016, we find that the overall price in the Greater Toronto Area is up about 12% for all home types. This puts us in line with the TREB’s 30 year average of annual appreciation and indicates that we are entering a healthier market for both buyers and sellers.
We will probably not see the full effect of the B20 stress test on the real estate industry for several more months as more buyers and sellers come back onto the market.