Why month of the June was very important in Toronto real estate market?

When suddenly government announced 16 new measurements to cool the market down in late April some Buyers got caught in the middle of buying/selling process. The buyers who had already bought some 30,000 properties in Feb, March, and April in the hottest season ever in Toronto, regretted what they had done after the announcement.

Some got problems with their bank appraisers and financing; and some had to sell their own properties. However after the great psychological effect of new government rules the market cooled down and they had to sell for less than

they expected. Some decided to forget about their deposit and not to close the deal! And some buyers tried to find excuses like the house is smaller than advertised, etc. to get out of their purchase.

The majority of these regretful transactions were supposed to be closed on late June. June historically is the busiest time of the year for lawyers and movers because most of the spring market transactions get closed in late June hence the hot spring market. 

Worries rose in May – What if a large number of buyers are not able to close their purchases and a domino effect cause a big market crash?

– The good news is the month of June is gone now meaning no major problem for the market. The problematic transactions either got closed, or mutually solved or even settled in courts. Whatever was meant to happen, it’s over now!

After a big drama imposed on the market such new foreign tax and mortgage industry issues, not only the market did not crash, but also it is showing a great recovery with about 8000 new transactions (in June only).

Definitely the worst is over and new buyers and new sellers are active now and the market is picking up.