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.