Canadian Existing Home Sales Drop 6.7% in May

The resale of Canadian homes fell 6.7 per cent in June from May, the largest monthly drop since 2010 and the third straight monthly decline as sales in Toronto plunged, the Canadian Real Estate Association said on Monday.

The industry group said actual sales, not seasonally adjusted, slumped 11.4 per cent from June 2016, while home prices surged 15.8 per cent from a year earlier, according to the group’s home price index.

CREA said changes to housing rules in Ontario, Canada’s most populous province and home to Toronto, prompted homebuyers to wait and see how the market would react to yet another attempt to rein in the housing boom.

Ontario introduced a 16-point plan to douse speculation blamed for fueling an extended housing boom. The changes included a 15-per cent foreign buyers tax similar to one imposed in Vancouver in 2016.

via Globe and Mail

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