Real Estate News

Toronto-area home sales drop in May after province introduces foreign buyers’ tax

Alexandra Posadzki

Home sales in the Greater Toronto Area plunged 20.3 per cent last month compared with a year ago, according to the latest data from the country’s largest real estate board, a sign that recent efforts to cool the searing market are having the desired effect.

However, some economists and realtors say the impact of the measures, which include a 15 per cent tax on foreign buyers in the rapidly growing Greater Golden Horseshoe region, could be short-lived.

Certainly there are a lot of people sitting back right now wondering what’s happening with the new housing plan and kind of taking a breather just to see how it affects the market,” said Brian Elder, a sales representative with Royal LePage Real Estate Services.

It definitely will pick up again. But to the degree it was before? I don’t know. I suspect it won’t get quite that heated.

The average selling price for all properties in May was $863,910, up from $752,100 the same month last year, the Toronto Real Estate Board said. But that was down from $919,614 in April, the first month-over-month drop this year.

Continue to read on.Global News

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