In a recent article in the "Globe and Mail", Terrence Belford wrote:
A reduction of more than one third is certainly a notable reduction. I have a feeling that August numbers will show a similar decline. Even though no one is calling it a recession yet, the downward trend is a worrisome one. Unless we see an upturn in September, things may be very bad during this fall.
It has only been one week into September, but, so far, I have not seen increasing numbers of new "for sale" signs in Thornhill and Richmond Hill. The other thing I have not seen is sales of homes already listed on the MLS. Many listings have expired, and for many existing listings, home owners chose to reduce the asking price.
What this tells me is that people are sitting on the fence, with fewer people buying and fewer people putting their homes for sale. Buyers are waiting because they expect that, with the increase in mortgage rates, prices will drop; and sellers are waiting because they are hoping for a recovery after this summer's price drop.