Canada home prices see biggest decline in seven years as Toronto falls

Lester Mason
October 12, 2017

The report released Thursday morning said overall house prices in the city during the third quarter of 2017 dropped 2.4 per cent year-over-year.

Keith Church, the broker of record for Royal LePage's local brokerage, says the numbers point to a continuing seller's market in the region.

"For the first time since 2011, we are seeing real estate in all five of our largest cities appreciate at a manageable, healthy clip", he said in a release.

"Canadian housing is enjoying a Goldilocks moment - not too hot, and not too cold", Soper added. "The cost of a down payment for a detached property in Greater Vancouver has already surpassed the average home price in many markets in Canada".

Compared with a year ago, the national composite house price index was up 11.4 per cent.

"Despite having already taken 30 to 40 per cent of entry-level buyers out of the marketplace entirely, the new mortgage regulations, and requisite stress tests, have helped to significantly drive condominium prices up", said Ryalls, in a statement.

The average price of a house in Regina has dropped slightly due to uncertainty in the energy and resource sector, according to a Canadian real estate survey. The central bank has said it is closely watching how the economy and consumers react to higher borrowing costs.

The move lower came as the index for Toronto, Canada's largest housing market, fell 2.7 per cent on a month-over-month basis.

It was the first monthly decline since January 2016 and the biggest since September 2010. The biggest market in the country has been cooling off since the Ontario government brought in measures in April curb rapidly rising prices.

Two recent interest rate hikes by the Bank of Canada have helped rein in demand, and analysts are divided over whether the market will manage a soft landing or see a U.S. style housing crash.

Other reports by Iphone Fresh

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