The chart above, published last month by BMO Nesbitt Burns, shows the MLS Home Price Index for both the Toronto and Vancouver areas. Vancouver is indexed to 100 for its peak in August of last year, which is when a foreign-buyer’s tax went into effect; Toronto is indexed to 100 for April of this year, the month Ontario’s housing measures were announced. Vancouver is shown with an eight-month lag, so that its August figure is aligned with Toronto’s April reading, the most recent available.
As you can see, it took Vancouver eight months to overtake its previous high. Thus, if Toronto follows Vancouver’s trend – and admittedly, that’s a big if – prices will have fully rebounded by December.
The Globe and Mail
Published Monday, Jun. 05, 2017