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Toronto Housing Market Slows After New Tax, Home Capital Woes

  • Unit sales drop 16% in first two weeks of May, data show
  • New house listings soar 47% as price growth slows to 17%
Photographer: Cole Burston/Bloomberg

Home price growth in Toronto slowed in the first two weeks of May and sales fell 16 percent from last year, signaling that a new tax on foreign buyers and funding crisis at mortgage lender Home Capital Group Inc. may be cooling the market in Canada’s biggest city.

The average selling price for all home types was C$890,284 ($658,000) through May 14, up 17 percent from the same period a year earlier and down 3.3 percent from the full month of April, according to data from the Toronto Real Estate board obtained by Bloomberg News. Housing prices jumped 25 percent in April and 33 percent in March from the year-earlier periods.