Sales of new construction homes in the GTA plunged as much as 68 per cent last year compared to 2021, but year-over-year prices declined only four per cent on the single-family home side and 3 per cent for condos.

December showed the first month-over-month price gain since the middle of last year, the Building and Land Development Association (BILD) reported on Tuesday.

Last year was a tale of two markets with sales and prices starting strong in the first part of the year and trending down in the second half as higher interest rates took hold, said CEO David Wilkes.

“Everybody is looking for that signal that the interest rate increases have stopped and that we’re in a period of stabilization,” he said.

The Bank of Canada is widely expected to raise its key lending rate another 25 basis points on Wednesday, bringing it to 4.5 per cent. But Wilkes said builders and home buyers will be looking for commentary that suggests that the bank will hold rates for a while after this announcement.

Even with that indication, he said, recovery won’t be like “a switch flipping.”

“It’s going to be a period of trust that the signal is being followed through with our central bank policy,” said Wilkes.

New single-family home prices — a category that includes townhouses, semi-detached and detached houses — dropped 4 per cent last year to a benchmark of $1.75 million, up from November’s benchmark of $1.74 million.

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