As Isaac Newton once said, what goes up, must eventually come down. The latest Canadian Real Estate data shows Canada’s housing market is no exception.
A combination of extreme lack in affordability and flood of new listings have finally tested the markets peak. The Toronto Real Estate Board reported July home prices in Canada’s largest city suffered their biggest monthly drop on record amid efforts by government to cool the market.
In this video I cover the most alarming statistics, both month over month and year over year.
Given the data released for the Toronto Real Estate market, it pays to look at July trends in Canada’s Vancouver market to see if this is a contained regional event. A short overview of Vancouver’s market quickly shows us that Toronto’s dramatic drop is not a contained regional phenomenon.
To make matters worse, we are now seeing a housing start decline across the country in the midst of a growing Canadian population. Coupled with record private debt and an interest rate increase by Bank of Canada, things are going to be nothing less than extremely volatile moving forward.