HOME SALES DECLINE
The Canadian Real Estate Association reported home sales in June saw their largest monthly decline since 2010. This decline is attributed in part in the Greater Toronto Real Estate market.
Compared to May, transactions in June declined by 6.7% on a national basis. The Greater Toronto Area registered a decline of 15.1%. This is the third month of consecutive monthly decline in home sales.
Last April, changes were made to the Ontario Housing Policy. Experts say this prompted many Buyers to take a step back to reflect how these changes will affect the market,. This is according to Gregory Klump, Chief Economist for CREA.
The lack of urgency for some buyers has changed their motivation. This could also have been as a result of the recent increase in interest rates. Some Buyers are coming off the sidelines now before their mortgage pre-approval expires. Now that the market has become more stable, buyers who have already purchased a home are now finding they need to reduce their asking price to sell their home.
FAIR HOUSING ACT
The Fair Housing Act was introduced by the Ontario Government earlier this year. Since this implementation, sales in Canada’s largest city have declined. The act introduced many measures including a 15% tax on foreign buyers . This was in an effort to try and restore the market to a more stable condition.
Sales in 70% of all local markets assessed by the Canadian Real Estate Association including Lower Mainland B.C., Quebec City and Montreal declined from the previous month. National home sales were down in June 11.4% compared to one year ago.
The national average selling price in June was up 0.4% from one year ago to $504,458. The figure was lower when excluding Vancouver and Toronto, resulting in an average selling price of $394,660.
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