Home sales in the GTA dropped 40 per cent year over year in March, with the average price also decreasing by 14 per cent, according to the latest Toronto Real Estate Board report.

TREB reported 7,228 residential transactions last month in the GTA, a steep drop from the record 11,954 sales reported in March 2017. Last month’s figure is down 17.6 per cent compared to average March sales for the previous 10 years.

The average price in March 2018 was $784,558 for all housing categories in the GTA, including detached, semi-detached, townhomes and condos. The average price was $915,126 in March 2017.

For the city of Toronto, the average price of a home was $817,642, down about 9 per cent from $897,856 a year earlier.

The share of high-end detached homes selling for more than $2 million in March 2018 was half of that reported in March 2017, further affecting the average price.

“The effects of the (Ontario government’s) Fair Housing Plan, the new (federally mandated mortgage) stress test and generally higher borrowing costs have prompted some buyers to put their purchasing decision on hold,” Tim Syrianos, president of the real estate board, said in a news release.

The number of new listings also decreased 12 per cent, year over year, in March.

“Right now, when we are comparing home prices, we are comparing two starkly different periods of time: last year, when we had less than a month of inventory, versus this year, with inventory levels ranging between two and three months,” said Jason Mercer, TREB’s director of market analysis.

“It makes sense that we haven’t seen prices climb back to last year’s peak. However, in the second half of the year, expect to see the annual rate of price growth to improve compared to (the first quarter), as sales increase relative to the below-average level of listings.”

The average GTA home price in March increased slightly from the previous month, when it was $767,818.

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