GTA home sales plunge as much as 61 per cent

Bernard Weil / Toronto Star File Photo

A stomach churning drop of up to 61 per cent in the number of home sales in some municipalities around Toronto could translate to a single-digit decline in regional prices by the end of the month, says a realtor who has crunched the numbers.

John Pasalis of Realosophy, found that Toronto region ground-level home sales — detached, semi-detached and town houses — dropped 26 per cent overall between April 20 and May 20 — the period directly following the provincial Fair Housing plan announcement designed to cool real estate speculation in the area.

Meantime, another data-tracking brokerage, Condos.ca, is showing that prices per square foot are down nearly 1 per cent in the last 60 days on its rolling 60-day average.

A nervousness has crept in and seems to be taking hold quite quickly," said Andrew Harrild, vice-president of Condos.ca.

The Realosophy analysis shows York Region, which has seen a higher level of investment buying, having the most significant drop in the number of re-sale home transactions — 61 per cent in Richmond Hill; 46 per cent in Markham and 44 per cent in Newmarket.

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