TREB's Market Year in Review & Outlook Report
MARKET YEAR IN REVIEW: The Market in 2017
• Total sales reported through TREB’s MLS® System in 2017 amounted to 92,394 - down by 18.3 per cent compared to the record set in 2016.
• The overall average selling price of $822,681 was up 12.7 per cent compared to 2016. Both average price and MLS® Home Price Index (HPI) a nnual growth rates were strongest in Q1 2017.
• The pace of year-over-year price growth receded during the last two-thirds of 2017, as listings increased relative to sales. Total new listings entered into TREB’s MLS® System amounted to 178,489 – up 15.7 per cent compared to 2016.
• While the announcement of the Ontario Fair Housing Plan (FHP), including a tax on foreign buyers, was the main impetus for the change in market conditions in the spring and summer of 2017, the effect was more psychological. Multiple sources have confirmed that foreign buying activity was very low prior to the FHP and remained low afterward.
• Demand for ownership housing strengthened in Q4 2017, perhaps indicating the waning effects of the FHP, and perhaps due to new, stricter mortgage lending guidelines announced for 2018, prompting home purchases earlier than they otherwise would have taken place.