The Canadian Real Estate Association (CREA) said on Monday that the selling of home in Canada recorded its lowest in the last seven years. In January, it topped 94 per cent.
Home prices in Toronto, Canada's largest city, increased by 1.1% as builders cited a shortage of developed land and higher construction costs, as well as market conditions, but it is worth noting that the rate of capital growth is slowing, as a result of the recently introduced foreign buyers tax and other measures that the Ontario government implemented in late April to rein in the Toronto housing market.
Greater Toronto home sales fell 15.1 per cent in June from May, according to CREA's seasonally adjusted data.
The association says sales for June were down 6.7 per cent compared with May on a national basis, with 70 per cent of all local markets posting declines during what is normally the most popular time of the year for real estate.
On an actual, not seasonally adjusted basis, sales fell 11.4% on a year-over-year basis in June.
"Changes to Ontario housing policy made in late April have clearly prompted many home buyers in the Greater Golden Horseshoe region to take a step back and assess how the housing market absorbs the changes", CREA chief economist Gregory Klump said in a statement. CREA said half of all local housing markets recorded year-over-year sales declines.
After being in the high 60 per cent range three months ago, the national sales-to-new listings ratio moved towards balanced market territory last month at 52.8 per cent.
The actual national average price for homes sold in June 2017 was $504,458, up just 0.4 per cent from where it stood one year earlier.
Some economists said worries over exuberance in pockets of the Canadian housing market - most notably Toronto and Vancouver - reinforced the Bank of Canada's appetite to raise rates amid improving economic data.