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Toronto’s Housing Recovery May Trail Vancouver’s

The CN Tower stands past buildings in this aerial photograph taken above the skylines of the Mississauga and Toronto, Ontario, Canada, on Monday, Oct. 2, 2017. Toronto housing prices fell for a fourth month in September as sales remained sluggish, particularly in the detached-home segment that has borne the brunt of the correction in Canada's biggest city.

Photographer: James MacDonald/Bloomberg

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Toronto’s housing market drop is echoing Vancouver’s earlier plunge but Canada’s most populous city may not bounce back so quickly as new rules continue to tighten access to home loans.

Canada’s two largest housing markets both saw a dramatic slide after a raft of regulations were instituted to tame runaway house prices. Benchmark price gains in Vancouver fell for five months after policy makers introduced a foreign buyers tax in August 2016 and began climbing steadily again early in 2017. In Toronto, prices have fallen for seven months since May and the market continues to cool.