{"id":26505,"date":"2017-10-05T19:41:52","date_gmt":"2017-10-06T00:41:52","guid":{"rendered":"http:\/\/olduvai.ca\/?p=26505"},"modified":"2017-10-05T19:41:52","modified_gmt":"2017-10-06T00:41:52","slug":"update-on-the-deflating-housing-bubble-in-toronto","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=26505","title":{"rendered":"Update on the Deflating Housing Bubble in Toronto"},"content":{"rendered":"<header>\n<h3 class=\"entry-title\"><a href=\"https:\/\/wolfstreet.com\/2017\/10\/05\/deflating-house-price-bubble-toronto\/\">Update on the Deflating Housing Bubble in Toronto<span style=\"color: #333333; font-size: 16px;\"><\/span><\/a><\/h3>\n<\/header>\n<div class=\"entry-content\">\n<p><strong>Missing Chinese money? Hardest hit is the priciest segment: detached houses.<\/strong><\/p>\n<p>Home sales in the Greater Toronto Area plunged 35% in September compared to a year ago, to 6,379 homes. The plunge in volume was spread across all types of homes. Even condos got hit:<\/p>\n<ul>\n<li>Detached houses -40.4%<\/li>\n<li>Semi-detached houses -30.2%<\/li>\n<li>Townhouses -34.4%<\/li>\n<li>Condos -27.5%.<\/li>\n<\/ul>\n<p>As total sales plunged, new listings of homes for sale rose 9% year-over-year to 16,469, according to the Toronto Real Estate Board (<a href=\"http:\/\/www.trebhome.com\/MARKET_NEWS\/release_market_updates\/news2017\/nr_market_watch_0917.htm\" target=\"_blank\" rel=\"noopener\">TREB<\/a>). And the total number of active listings of homes for sale soared 69% year-over-year to 19,021.<\/p>\n<p>While Toronto\u2019s housing market is still not drowning in listings, the plunge in sales volume and the surge in listings combined is a major change in market direction. And prices have followed.<\/p>\n<p>The report tried to brim with industry hope: \u201cThe improvement in listings in September compared to a year earlier suggests that home owners are anticipating an uptick in sales activity as we move through the fall,\u201d And it grabbed at straws: \u201cConsumer polling undertaken for TREB in the spring suggested that buying intentions over the next year remain strong.\u201d<\/p>\n<p>Alas, \u201cin the spring\u201d \u2013 precisely in April \u2013 Toronto\u2019s housing bubble peaked with a final and phenomenal melt-up of home prices: The <a href=\"https:\/\/wolfstreet.com\/2017\/04\/05\/toronto-house-price-bubble-goes-nuts\/\">average price had soared 30%<\/a> \u00a0year-over-year to C$920,761! And the mood of the housing market was at its most buoyant.<\/p>\n<p>So how did the plunge in volume and the surge in listings impact prices?<\/p>\n<p>The average price of all homes in the Greater Toronto Area, at C$775,546 in September, is down 16% from the crazy peak in April. Year over year, the average price is now up only 2.6%.<\/p>\n<p>That\u2019s a lot of backpedaling from a 30% year-over-year increase in April. To cool the housing market euphoria \u2013 and the risk it poses to lenders and homeowners \u2013 and to put a lid on ballooning affordability issues, the Ontario government introduced a\u00a0<a href=\"https:\/\/wolfstreet.com\/2017\/04\/20\/toronto-house-price-bubble-foreign-buyers-tax-double-ending-by-brokers-paper-flipping-by-property-scalpers\/\">laundry list of measures<\/a>\u00a0on April 20, including a 15% transfer tax on nonresident foreign speculators.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Update on the Deflating Housing Bubble in Toronto Missing Chinese money? Hardest hit is the priciest segment: detached houses. Home sales in the Greater Toronto Area plunged 35% in September compared to a year ago, to 6,379 homes. The plunge in volume was spread across all types of homes. Even condos got hit: Detached houses [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[103,9088,9089,406,1378,783,803,4254,4255],"class_list":["post-26505","post","type-post","status-publish","format-standard","hentry","category-economics","tag-canada","tag-greater-toronto-area","tag-gta","tag-housing-bubble","tag-ontario","tag-taxes","tag-toronto","tag-wolf-richter","tag-wolfstreet"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/26505","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=26505"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/26505\/revisions"}],"predecessor-version":[{"id":26506,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/26505\/revisions\/26506"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=26505"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=26505"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=26505"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}