Home sales across Canada see biggest monthly dip in years

Home sales across the country dropped sharply last month, driven by a plunge in the Greater Toronto Area (GTA) after Ontario imposed a tax on foreign buyers aimed at cooling the redhot market.

May sales were down from the previous month in about half of all local markets, but the large national decline was driven by a whopping 25.3 per cent monthover-month decline in the GTA, the Canadian Real Estate Association said Thursday.

The number of residential properties sold nationwide fell by 6.2 per cent in May compared to April, the largest month-to-month decline in nearly five years, CREA said. The Ottawa-based industry group represents real estate agents, brokers and salespeople in Canada.

“This is the first full month of results since changes to Ontario housing policy made in late April. They provide clear evidence that the changes have resulted in more balanced housing markets throughout the (Greater Golden Horseshoe) region,” CREA chief economist Gregory Klump said in a statement.

CREA said it is revising downward its forecast for housing sales in Ontario following provincial measures to cool the market.

Ontario introduced a 16-point plan to cool the market with measures that included a 15 per cent non-resident speculation tax in the GGH and expanded rent control rules for the entire province.

“Evidence suggests that housing market sentiment has similarly cooled following housing policy changes made by the provincial government in April 2017. Trends for the province are softening, with home sales and price growth in the (GGH) region slowing,” CREA said.

Ontario’s tax change followed