Home sales in Canada fell 1.7% in April from an all-time record in March, while the number of listings jumped 10% since last month, according to a report released by the Canadian Real Estate Association Monday.
The dip in sales reflects Ontario’s efforts to temper what some call a housing bubble with government measures, including a new 15% foreign buyers tax, imposed in April, the report said. Toronto, Ontario’s capital and one of the country’s most expensive housing markets, saw sales fall 6.7% in April from March, with a 36% increase in listings, according to the report.
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"Homebuyers and sellers both reacted to the recent Ontario government policy announcement aimed at cooling housing markets in and around Toronto," Gregory Klump, the association’s chief economist, said in a statement. "Policy makers will no doubt continue to keep a close eye on the combined effect of federal and provincial measures aimed at cooling housing markets of particular concern, while avoiding further regulatory changes that risk producing collateral damage in communities," he said.
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Housing prices, however, are up nationally from last year. The average Canadian home price in April was C$559,317 (US$410,259), up 10.4% in comparison to April 2016, according to the report. Home prices continue to be pulled up by sales in Vancouver and Toronto, where the average price in April was, respectively, C$941,100 (US$690,296)and C$595,088 (US$463,497), the report said.