Toronto’s housing market is showing further signs of life after both prices and sales abruptly plunged.
The Teranet-National Bank House Price Index for July was released overnight, which shows that house prices in Toronto are rebounding after plunging 7.4% between July and December 2017:
As at July, Toronto values were 4.0% below their July 2017 peak.
Therefore, after growth was running at an insane 29.3% in June 2017, annual growth was negative -4.0%:
Separate data from the Toronto Real Estate Board (TREB) shows that average sales volumes were up 16% in the year to July 2018 in the Greater Toronto Area (GTA), whereas average prices were down 4.3%:
The primary reason for Toronto’s initial price and sales plunge was the market-cooling measures brought in by the Ontario government in April 2017 (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. These appear to have now run their course.
Elsewhere in Canada, the Teranet-National Bank House Price Index for July shows that annual price growth was 10.6% in Vancouver, 4.0% in Montreal, and 1.8% across the 6-City Composite Index.