With the recent news from Global TV and TD Canada Trust that the number of home sales and fallen off by more than double what was predicted, many people were wondering how it could have happened so fast and what were the factors that contributed to such a quick cool off. I dug into the stats and found some very interesting numbers and information. The prices of homes are not dropping nearly as fast as the amount of sales, not even close.
Low inventory across the board is the likely reason for this.
The main contributing factors to the recent and very steep decline are as follows:
- Mortgage Stress Test
- Speculation Tax
- Vacancy Tax
- Foreign Buyer’s Tax
- Property Purchase Transfer Tax Increase
- Interest Rate Increase