If you are thinking of buying, what are you waiting for?
Toronto home sales fall 40%, prices down nearly $175,000 since April
TORONTO, Home sales in the Greater Toronto Area tanked last month and prices continued to recede, the city's real estate board said Thursday, further evidence that provincial measures aimed at cooling one of the hottest housing markets in North America may be working.
The number of transactions fell 40.4 per cent in July compared to the same month last year, driven by fewer sales of detached homes in Toronto and its surrounding areas.
Tim Syrianos, president of the Toronto Real Estate Board, said the decline in activity has less to do with foreign buyers and more to do with potential homebuyers waiting to see how the market plays out.
"Clearly, the year-over-year decline we experienced in July had more to do with psychology, with would-be home buyers on the sidelines waiting to see how market conditions evolve,'' Syrianos said in a statement.
Toronto housing market downturn to be short lived, federal housing agency says
TORONTO, The recent downturn in Toronto's real estate market, brought on after Ontario introduced measures this spring including a foreign buyers' tax, is expected to be brief, the federal housing agency said Wednesday.
Property prices in the city which fell from an average of $919,589 in April to $793,915 last month, according to data from the Toronto Real Estate Board should pick up again due to supply constraints and a stronger economy, Canada Mortgage and Housing Corp. said.
"The response we're seeing in the Toronto market seems almost emotional and a knee-jerk reaction to some of the changes, which suggests that these impacts will be short-lived,'' Dana Senagama, CMHC's principal market analyst for Toronto, said during a conference call to discuss the agency's latest housing market assessment.
The provincial government's measures, which were retroactive to April 21, include a 15 per cent tax on foreign buyers in the Greater Golden Horseshoe region, expanded rent controls and legislation allowing Toronto and other cities to tax vacant homes.
"If job creation continues in Toronto and the economy continues to fuel the housing demand, we can expect some of the pressures on house prices in Toronto to resume,'' said Bob Dugan, CMHC's chief economist.
Like Toronto, Vancouver also experienced a real estate slowdown following the implementation of a tax on foreign