REPORT: Mid-July Toronto Home Sales Fall 39.3%

New numbers in a report by the Toronto Real Estate Board show a huge drop in home sales and sale prices in the Toronto housing market.

As noted by BNN, the numbers reveal “an average sale price of $760,356 during the first 14 days of this month. That’s a more than $159,000 discount compared to the average sale price of $919,589 when the market hit its peak in April.”

In addition to the price drop, sales are down a full 39.3% from the mid-July of last year. According to BNN, the detached market fell the most with sales down nearly 45% since June of 2016.

The drop in sales and home prices comes as worries grow about the uninsured mortgage market, and whether new “stress tests” could reduce the purchasing power of those in the uninsured market by 18%.

Depending on a fragile market

As I noted yesterday, “the core of the middle class and our economy is being hollowed out by economic restrictions, taxes, and policies that only benefit those who are already very wealthy. This has led to an over-reliance on debt and a dangerous housing bubble, and those who are raking in the profits – the banks – are terrified that it will stop.”

If the housing bubble is really beginning to burst, the true weakness of our economic system and the true fragility of our “growth” will be revealed. We will have to face the real consequences of the damage that has been done to working class and middle income Canadians.

Canada can’t hide behind debt and a housing bubble forever.

Spencer Fernando

2 comments Add yours
  1. Well, this is easily solved! More taxes, raise interest rates again, more regulation to stifle business……….and lets give more money to Africa! Should work. Oh, and sell more of our resourses to China…….

    1. I have to agree with your sentiment and disagree with the writer’s use of the tired cliché of the rich getting richer. Yeah, getting to pay more taxes with middle income earners suddenly finding themselves as part of “the rich.”

      Begin rant:

      Give it a rest, Marx ideas about social atomization were precisely wrong, and Lenin died in 1924, but not before he managed to kill millions.

      The same goes for the hardcore conservative types who want to control us too., you’re not “smarter” than we are, we don’t need you to “improve” us.

      If you want to observe a class struggle, between the have and have nots, then consider the owners and the non owners, in many cases the did and did not. IOW same old same same old, it’s always been hard to buy a home.

      Then government in their usual Johnny Come Lately fashion (decision lag is being charitable), at the bottom of the interest cycle, make qualification harder as rates inevitably rise. Nobody does a better job of hurting people’s chances of buying homes than our illustrious governments, trying to save us from our inequality, by skinning the onion one more time with revenue enhancing foreign buyer, land transfer & empty building taxes, plus their old friend, needless regulation, in tow with the rent seekers ensconced with absconding societal wealth.

      This always involves coercion and always ends with less freedom AND much less prosperity. We really don’t need a new set of kings, it took a thousand years to get rid of the last bunch.

      Hint: middle income homeowners are seeing huge increases in their wealth, as their parents did. Most people can afford a mortgage payment, it’s putting together the down payment that’s tough. And it always has been, requiring creative financing and family help.

      As Margaret Thatcher famously said about socialists – they would rather the poor were poorer provided the rich were less rich. The inevitable result is carbon taxes because the poor don’t pay income taxes. When will we wake up to this reality of out of control government, making us all poorer, with the “most vulnerable” hardest hit.

      We have politicians telling us with a straight face reducing the value of investable assets is for our own good, to help with “bubbles.” More of their help is something we could use less of.

      Rant: end. Thank you.

Leave a Reply

Your email address will not be published. Required fields are marked *