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Vancouver home sales down 26%, Toronto still going up

September 13th, 2016  |  Home

It appears that the foreign buyer property tax British Columbia introduced last month may have already made an impact on the Vancouver real estate market as sales dropped by a significant amount compared to the previous month.

Home sales in Vancouver are back at “historically normal” levels after sales fell 26% year-over-year according to the Real Estate Board of Greater Vancouver. However, they say it is still too early to say how much of a role the foreign buyer tax had in the sales drop.

CBC reported that sales numbers were actually 3.5% below the 10-year sales average for August. It’s a good sign for those that were worried about the market crashing as less sales activity will hopefully reduce overvaluation.

In Toronto, things are looking the exact opposite with a sales increase of 23.5% in August and 17.7% average increase in prices across the GTA. Some have speculated that the jump in sales could be connected to the drop in Vancouver. With prices there essentially being pushed 15% higher with the new tax, Toronto may seem like a better deal for those hoping to invest in Canadian real estate.

The Toronto Real Estate Board has said it is committed to investigating the prevalence of foreign investment in the Toronto market.

Sales are catching up to the pace of new listings with sales at 9,813 and new listings at 12,409. The unsustainable market in Toronto has become a big concern for multiple levels of government as residents struggle not only to buy homes but even to rent in the popular city.