GTA home sale plunges, touches lowest point since 2010
The Canadian Real Estate Association (CREA) said on Monday that the selling of home in Canada recorded its lowest in the last seven years.
In a statement, CREA chief economist Gregory Klump said: "Changes to Ontario housing policy made in late April have clearly prompted many homebuyers in the Greater Golden Horseshoe region to take a step back and assess how the housing market absorbs the changes."
“The recent increase in interest rates could reinforce a lack of urgency to purchase or, alternatively, move some buyers off the sidelines before their pre-approved mortgage rate expires," he added.
"In the meantime, some move-up buyers who previously purchased a home before first selling may become more motivated to reduce their asking price rather than carry two mortgages" Klump stated.
The transaction for the sale of houses decreased by 6.7% as compared to May on a monthly basis.
The CREA recorded its consecutive drops in last three months by 15.1%.
One of the biggest reason for the dip in sale of houses is considered to be the imposition of 15% tax on foreign buyers by the Ontario government.
The sales were down in cities like Lower Mainland in B.C., Montreal and Quebec City.
Image: Creative Commons.
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