Canadian housing sales sees biggest drop in nearly five years

June 15th, 2017  |  Home

Housing prices continue to climb on an annual basis. As of May the average cost of a house in Canada was $530,304, which is a 4.3% increase from May of last year. However, while housing prices have continued to rise, sales have dropped. April to May saw a substantial decline in Canadian housing sales. As reported by the Canadian Real Estate Association, sales dropped 6.2% in the month of May.

While May is typically a strong month for housing sales, and prices continue to rise, this 6.2% marks the biggest drop in the market Canadians have seen in nearly 5 years. The CREA states that this drop could be attributed to the measures Ontario has taken to cool the over-heated market and the declining sales that the Toronto and surrounding area have experienced as a result.

Back in April, the Ontario Government put legislation in place to help bring balance to the uneven GTA housing market. Measures were put in place to expand rent control, protecting tenants from landlords charging them extra fees. Toronto is also now able to push taxes upon those sitting on vacant property, encouraging them to sell or rent the space. The biggest provision put in place was the 15% foreign buyers tax. Those buying property in the “Greater Golden Horseshoe” (which stretches from the Niagara Region to Peterborough) who are not Canadian citizens or permanent residences are subject to a 15% tax on their property.