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“It is not surprising that home prices in some market segments were flat to down in January compared to last year,” said Jason Mercer, the board’s director of market analysis. “At this time last year, we were in the midst of a housing price spike driven by exceptionally low inventory in the marketplace.”

The industry group remains optimistic the market will stabilize, releasing a 2018 outlook last week that pointed to a slower sales start to the year as the market adjusts to the changes.

“As we move through the year, expect the pace of home sales to pick up,” board president Tim Syrianos said in the statement.

The benchmark home price index remained relatively unchanged in January despite the slump in sales, according to Bloomberg calculations. The index has dropped nine per cent since May, mainly due to falling prices in Toronto’s detached market. The condominium segment, in contrast, has seen double-digit annual growth.

“It is likely that market conditions will support return to positive price growth for many home types in the second half of 2018,” Mercer said.

New listings rose 17 per cent from the same period last year, but it was the second lowest level for January in the past decade. Active listings soared 136 per cent from a year earlier.

Bloomberg.com