Average Canadian house price falls in July

Paterniano Del Favero
Agosto 16, 2017

The average sale price of a Canadian home has fallen by 0.3 per cent in the past year, the first yearly decline since 2013.

"All eyes remain riveted on Toronto in order to see how the situation will evolve", said Robert Kavcic, senior economist at BMO capital Markets, in a note.

"It's now vividly clear that policy changes, regardless of the precise number of non-resident investor transactions they've impacted, have worked to alter market psychology that was bordering on unsafe through 2016 and early-2017".

Sales of properties in the Toronto area have slowed since the ontario government decided, in April, introducing a dozen measures, including a tax of 15 % for foreign buyers, in order to curb soaring prices.

Last year, a tax aimed at foreign buyers had also been enacted in British Columbia.

Compared to the same period previous year, the number of homes sold in the greater Toronto area plunged by 40.7 % in July.

The association says the average price for a home sold last month was $478,696, down 0.3 per cent from July 2016, due to fewer sales in Toronto and Vancouver compared with previous year. Home sales are now down 15.3% from the record set in March.

Stripping out Toronto and Vancouver, the average price nationally would drop by more than $100,000, to $381,297.

National home sales fell 2.1% from June to July and 11.9% year-over-year. Greater Toronto fell 5.4 per cent compared with June, while Calgary slipped 5.5 per cent.

Its chief economist, Gregory Klump, said that July showed the lowest monthly decrease in residential sales in the Golden Horseshoe, which includes Toronto and its environs - from the changes announced in April by the ontario government. Greater Vancouver edged down 1.7 per cent. "This suggests sales may be starting to bottom out amid stabilizing housing market sentiment. Time will tell whether that's indeed the case once the transitory boost by buyers with pre-approved mortgages fades".

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