“Despite all the stuff happening in the Greater Golden Horseshoe the numbers aren’t dramatically different than we expected. We’re pretty well on par,” Christopher Alexander, regional director with RE/MAX, told Canadian Real Estate Wealth. “There were significant changes the government introduced on April 20 and any time that happens sometimes drastic outcomes can happen. I’m actually pretty pleased.”
Canada’s average home price dropped 1.5% to $607,100 month-over-month, which is the largest decline since 2008’s recession.
Toronto led the charge with its own 4.7% month-over-month dip.
The reason for the GTA’s cooling, according to many pundits, is the Ontario Fair Housing Plan, introduced in April, which included a foreign buyers tax and other measures meant to address affordability issues.
That, coupled with increased mortgage rates, has many Canadians sitting on the sidelines and waiting to see how it all shakes out.
However, some – including the Canadian Real Estate Association – believe the most precipitous declines may have already been felt in Toronto.
“July marked the smallest monthly decline in Greater Golden Horseshoe home sales since Ontario’s Fair Housing Plan was announced in April,” said Gregory Klump, CREA’s Chief Economist. “This suggests sales may be starting to bottom out amid stabilizing housing market sentiment. Time will tell whether that’s indeed the case once the transitory boost by buyers with pre-approved mortgages fades.”
Newly listed homes dropped 1.8%, led by a decline in the GTA.
“Many other markets in the Greater Golden Horseshoe region have also seen new supply pull back recently after having jumped immediately following the Ontario government’s announcement of its Fair Housing Plan in late April,” CREA said.
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Canada’s average home price may have shown the most precipitous decline since the recession, but one industry veteran sees the silver lining