During last month, home sales in Greater Toronto tanked and prices continued to get recede, said by city’s real estate board on Thursday, according to further evidence provincials aimed to cool down at one of the hottest real estate market in North America.
Number of transactions fell by 40.4% in July as compared to same month during last year, driven by few sales of home in Toronto and surrounding area. Average selling price of homes in Toronto was $746,218 up by a year ago.
It is third consecutive decline and average price down nearly by $175,000 since April, when Ontario government introduced dozens which include 15% tax on foreign buyers, in efforts to stabilize the prices which spiral to reach out for homebuyers.
According to Bloomberg, drop down in prices in month of July was largest downfall ever seen in records since back to 2000.
President of Toronto Real Estate Board, Tim Syrianos said that decline in activities has less to do tasks with buyers from foreign and more to do with the potential buyers who are waiting to see ha how market plays out.
Syrianos said that years over years decline which they experienced in July had more to do with the psychology and this would be the home buyers on sidelines waiting to see that how the condition of market will evolve.
Number of listing was up by 5.1% a year ago, board said that supply of houses will remain an issue.
Douglas Porter, BMO, Chief Economist said that Toronto;s market is likely to follow Vancouver playbook i.e a sharp drop in sales and a huge upward spike in listing with moderate cool in prices followed by subdued appreciation comparison with per tax mania. Similar tax a year ago was levied against the buyers from foreign in Vancouver, after which there was precipitous decline in number of homes which were sold out.