There were 5025 sales in February 2019, down 2.4% compared to February 2018. On a seasonally adjusted basis, sales were down 7.7% compared to January 2019. There were 9.828 Homes listed in February 2019, down 6.2% percent year-over-year.
Home sales reported through TREB's MLS System have a substantial impact on the Canadian economy. A study conducted by Altus for TREB found that, on average, each home sale reported through TREB resulted in $68,000 in spin-off expenditures accruing to the economy. With sales substantially lower than the 2016 record peak over the last two years, we have experienced a hit to the economy in the billions of dollars in the GTA alone. This hit has also translated into lower government revenues and if sustained, could impact the employment picture as well.
The OSFI mandated mortgage stress test has left some buyers on the sidelines who have struggled to qualify for the type of home they want to buy. The stress test should be reviewed and consideration should be given to bringing back 30-year amortizations for federally insured mortgages. There is a federal budget and election on the horizon. It will be interesting to see what policy measures are announced to help with homeownership affordability.