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Toronto Strain Drives 14.5% Plunge in Canadian Home Sales

  • Drop comes amid tougher mortgage rules, rising interest rates
  • Prices remain little changed even after policy makers step in
Homes For Sale As Ontario Tries To Temper Rising Prices With New Tax
Photographer: Mark Sommerfeld/Bloomberg
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Canadian home sales plunged the most in a decade last month, driven by fewer transactions in a Toronto market squeezed by tougher mortgage lending rules and higher interest rates.

Sales fell 14.5 percent nationwide from December and were down 26.6 percent in Toronto, the Canadian Real Estate Association said Thursday from Ottawa. The national decline was the biggest since 2008 and Toronto’s was the biggest since 1989, according to historical CREA data.