Toronto house prices continue to fall as new lending rules bite

By Leith van Onselen

Earlier this month, it was suggested that the wheels were falling off Canada’s biggest housing market – Toronto-  with the Toronto Real Estate Board (TREB) reporting that house sales had fallen by around a third year-on-year in the Greater Toronto area, with average sales prices for all dwelling types also down 12.4% year-on-year to $767,818, and listings rising:

Now, Teranet has reported its results for February, which recorded further falls in Toronto:

As shown above, Toronto house prices are now down 7.3% from their July 2017 peak, with annual price growth tumbling from an insane 29.3% in June 2017 to 6.2% currently.

The primary reason for Toronto’s slide is due to market-cooling measures brought in by the Ontario government last April (including a 15% foreign buyers tax), as well as tougher new mortgage rules introduced in January by the Office of the Superintendent of Financial Institutions.

By contrast, Canada’s other bubble market – Vancouver – continues to march higher, hitting another all-time high in February, with annual price growth still powering along at an insane 15.8%.

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Unconventional Economist

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