Ontario and British Columbia Home Sales Decline Driving Canada's Housing Market into the RED in July

Burlington - According to data released today to The Wealthy Homeowner™, Canada's housing market has entered a period of contraction in real estate sales a precursor to the release of pending data on the house price correction already underway.

Since February of 2016, the two provinces in Canada that have been supporting gains in the national housing market have watched as their markets slowed. In July both British Columbia and Ontario on an actual sales count of single homes sold went negative in both provinces pulling the national actual sales total for July below the total reached a year earlier. This was the first month since June of 2013 that year over year monthly sales declined ending Canada's longest run of consecutive increases that had lasted an unprecedented 36 months.

“Early fall in 2015 our leading indicators for future unit sales began to suggest the spring of 2016 would begin to record a deceleration in home sales,” stated Ross Kay the creator of The Wealthy Homeowner™. “Greater Vancouver and Greater Toronto being the prime regional markets in the provinces they are located were having home sales becoming increasingly reliant on previous house price gains instead of mortgage debt pay down to allow the trading of one existing home for another to take place.”

British Columbia had watched as the average purchase price being paid had increased a staggering $184,109 in the last three years, while Ontario's increase reached $111,072 during that same period. In comparison Quebec which houses the second largest number of homes in Canada had watched as their average purchase price did not even keep pace with inflation over the last three years, mirroring that of homes located in Alberta.

“We are often amazed at how housing market intelligence is misunderstood simply because of how it is presented to the public. When you filter out the noise that referencing percentage change creates and instead focus on real world dollars, including the incomes required to support further house price gains, you quickly understand something is wrong,” continued Mr. Kay. “After forty years of researching how home owners act when trading one home for another, the simple metrics that allow a market to be read accurately, also provide the insight that a house price correction is now on the way.”

Canada had relied on the price of oil and rising mortgage debt to drive its economy forward through the great recession and in the years afterwards. The collapse in oil prices removed that support leaving the nation's economy to rely on the illusion of net wealth gains rising home prices creates prior to a reset in prices occurring. July provided the sales data to support that Canada's national correction in home prices was already ongoing months beginning nationally in March of 2016.

The Wealthy Homeowner™ offers it members programs and strategies to both protect and build their net wealth through homeownership. Ross Kay is Canada's leading authority on housing markets and the home selling infrastructure. The proprietary measures supplied to The Wealthy Homeowner™ members allow them to bypass the static that has dominated the homeownership conversation for decades.

Further details can be found at www.TheWealthyHomeowner.ca.