Canada's housing bubble began to show the first signs of trouble in July. The Canadian Real Estate Association said Wednesday that sales fell by a seasonally adjusted 14.7 per cent from July 2015 and are now at their lowest level since January 2008. And this flood of news on the Canadian housing bubble and speculations about a Canadian housing crash have now begun to slice into the previously imperturbable confidence of regular Canadians in their housing miracle. On 2 August, British Columbia's 15% transfer tax on homes involving foreign investors came into effect, with data for the first half of August showing sales dropped 51% year-on-year, with detached home sales down 66%. The trend has increased speculation that a Canadian housing crash has begun, with the Bloomberg Nanos Canadian Confidence Index reporting that the percentage of respondents expecting a decline in house prices has increased from 12% to 20.5%.
Canada's housing bubble began to show the first signs of trouble in July. The Canadian Real Estate Association said Wednesday that sales fell by a seasonally adjusted 14.7 per cent from July 2015 and are now at their lowest level since January 2008. On 2 August, British Columbia's 15% transfer tax on homes involving foreign investors came into effect, with data for the first half of August showing sales dropped 51% year-on-year, with detached home sales down 66%. The trend has increased speculation that a Canadian housing crash has begun, with the Bloomberg Nanos Canadian Confidence Index reporting that the percentage of respondents expecting a decline in house prices has increased from 12% to 20.5%.