Chill descends on Toronto housing as prices drop fastest since 1988

Ottawa

CANADA'S hottest housing market is definitely cooling down. Total home sales in Greater Toronto dropped to 5,977 in June, the lowest level since 2010 and down 15.1 per cent from the month prior, data from the Canadian Real Estate Association (CREA) show. Average prices are down 14.2 per cent since March - the fastest three-month decline in the history of the data back to 1988 - while the ratio of sales to new listings sits at its lowest level since 2009.

The June data comes after a series of measures by policymakers to tighten access to the market - and before the Bank of Canada hiked its benchmark interest rate last week, the first increase since 2010 that will further pinch mortgage eligibility.