TORONTO - The number of homes sold in the Toronto region in January was down sharply compared with a year ago.

The Toronto Real Estate Board says Greater Toronto Area realtors reported 4,019 home sales for January through the MLS system, down 22 per cent from a record 5,155 a year ago.

The average selling price was $736,783, down from $768,351 a year ago.

The move lower came as the number of new listings increased to 8,585 compared with 7,314 new listings entered in January 2017.

Toronto home sales started last year on a hot streak, but slowed after the Ontario government moved to cool the market.

A new stress test for homebuyers who do not require mortgage insurance that came into effect this year and higher mortgage rates have also weighed on the market.