Last Friday an article that was released, reported a drop in the number of home sales in some areas of Toronto.
A drop of 61 per cent has been the biggest recorded for the month-to-month analysis from April 20 to May 20. the 61 per cent drop was seen Richmond Hill, an area which sees a high level of investment buying. Not too far behind Richmond Hill were the following:
- Markham at a 46 per cent drop
- Newmarket at a 44 per cent drop
- Toronto region at a 26 per cent drop
Other calculations by Condos.ca, have revealed that prices per square foot are down nearly 1 per cent in the last 60 days on its rolling 60-day average. Realosophy determined that sales were down by 23 per cent in Toronto.
The data collected from April 20 to May 20 was directly following the Fair Housing Plan announcement that was intended to cool real estate speculation in the area. To read more about the Fair Housing Plan, please see our previous blog post.
However, among all of these significant drops in sales, there were some increases. Pickering saw a 15 per cent increase and Whitby saw 11 per cent. Additionally, it is quite unusual to see prices fall in the period studied, as April and May are peak months for sales and listings, but it is still too soon to definitively say that the policy announcement is the source of recent events.
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