With the Province of Ontario announcement on measures to slow the real estate market in Ontario, we’ve seen some interesting behaviour as a direct impact of their involvement in the industry.
If you look at the chart below, you’ll see weekly sales in 2017 (blue line) compared to 2016 and 2015. As a reference point the weekends are the narrow dips as deals are usually signed and processed during the week. We’ve had a strong year of sales, especially the three weeks approaching the week of the announcement, with a significant drop, the actual week of the announcement. What does this mean? There were a number of people trying to buy, before new measures were introduced, then this dropped off and people waited to hear what was going on. The gray bar shows the day of the announcement of the Province’s proposed actions.
So how are we recovering? We’re still seeing a strong market in sales, but very slightly down from the last two years. Did they really change the market? It looks like they shifted business around, but overall, I expect the numbers to still be similar to previous years, but still at higher prices than last year.
Was it lip service to appease the public, or did they actually effect long lasting change? That, we will know as the next couple of months roll out!