In the wake of recently implemented federal measures aimed at moderating Canada’s real estate sector, the Canadian Real Estate Association announced that national home sales shrank by 5.3 per cent in November.
CREA noted that this represented the greatest drop in monthly home sales nationwide since August 2012. Much of this contraction stemmed from weaker activity in Vancouver, where transactions fell by 3.4 per cent.
Sales in Toronto similarly went down by 2.4 per cent, Bloomberg
“The government’s newly tightened mortgage regulations have dampened a wide swath of housing markets, including places not targeted directly by the government’s latest regulatory measures,” CREA president Cliff Iverson stated.
However, the cooling down was not yet evident in average sales prices of homes sold. Nationwide, prices went up by 2.3 per cent, fueled by increases in the two hottest cities.
In October, the federal government implemented far-reaching changes to the rules governing mortgages. Among the newest stipulations were tighter requirements that mandated would-be borrowers to qualify under the Bank of Canada’s 4.64 per cent posted rate for five-year fixed mortgages.
CREA raises forecast for 2016 home sales, expects fewer sales in 2017
Experts’ projections on what 2017 holds for Canadian real estate