Home prices in Canada’s largest city posted their biggest monthly drop in at least 17 years in July and sales plunged as government efforts to cool the market and the near-collapse of a mortgage lender made buyers leery.
The benchmark property price, which tracks a typical property over time, dropped 4.6 per cent to $773,000 from June. That’s the biggest monthly house price drop since records for the price index began in 2000, according to Bloomberg calculations, and brings prices down to roughly March levels. House Prices are still up 18 per cent from the same month a year ago, according to the Toronto Real Estate Board. Remember to read between the lines – even though there may have been a small correction in prices from June, don’t forget that the correction is based off the tremendous house price increases we saw the same time last year.
Transactions tumbled 40 per cent to 5,921 on the year, the biggest year-over-year decline since 2009, led by detached homes. The average price, which includes all property types, rose 5 per cent to $746,218 from July 2016. That compares with a 17 per cent increase at this time last year.
C/O – The Financial Post