Toronto’s housing market drop is echoing Vancouver’s earlier plunge but Canada’s most populous city may not bounce back so quickly as new rules continue to tighten access to home loans.
Canada’s two largest housing markets both saw a dramatic slide after a raft of regulations were instituted to tame runaway house prices. Benchmark price gains in Vancouver fell for five months after policy makers introduced a foreign buyers tax in August 2016 and began climbing steadily again early in 2017. In Toronto, prices have fallen for seven months since May and the market continues to cool.