Toronto Luxury Real Estate Market Is Skewing the Numbers

Construction in Toronto by JasonParis
Construction in Toronto
by JasonParis

This September was quite cold for the real estate market. After the introduction of new measures aimed at cooling the market, sales really slowed down. According to the Toronto Real Estate Board, sales of detached houses were 19 per cent down in the GTA, and in the City of Toronto itself, they were decreased 27 per cent. This is probably what Jim Flaherty wanted.

Cold September

Although all economic indicators were improving, the rising GDP (1.8%), growth of employment in Toronto (1.6%), and decreased inflation (-1.2%) didn't translate into higher house sales. Therefore it seems that after the economically cold summer, a chilly autumn will come. In comparison to September 2011, the number of transactions was down by 21 per cent. Analysts at TREB claim that the lower number of working days in September have to be taken into account, but others like David Madani, who works for Capital Economics, say that this is just an attempt add some colour to an otherwise bleak picture.