Yes, it is.
The Toronto Real Estate Board counted 2,999 sales in the first two weeks of June, about half compared to the number of sales in the same period last year according to real estate board data.
Meanwhile, new listings jumped 22 per cent causing Toronto's ratio of sales to new listings to fall to 40 per cent in May — the threshold for what is considered a "buyer's market," where purchasers rather than sellers have the upper hand.
The average selling price for all properties is up by 6.7 per cent compared to a year ago, but when you get a little more granular and look at the monthly data, the average price of $808,847 in early June has fallen since April’s average price, which peaked at $920,791.
That’s a 12 per cent decline in two months.
The Ontario government’s new, tougher housing regulations which include the 15 per cent foreign buyer’s tax, are likely having some effect. The new housing rules comprised of 16 measures were designed to cool off rapidly growing house prices and improve affordability in the rental market. However, many experts believe the GTA housing market was heading for a cooling period regardless of the new rules.
We at Canadian Real Estate Today (CRET) predict the GTA housing market will experience an upward rebound due to strong demand and lack of supply. Greater Vancouver, following the introduction of their own foreign buyer’s tax, saw housing prices fall over several months only to rebound. The GTA will experience something similar. After that rebound, we suspect many potential home buyers, having observed what can happen to prices in a short time, may decide to be patient and wait. That, along with slowly rising interest rates, will have a long-term cooling effect and level prices over the next two to five years.
Will that mean a bust? Very unlikely.