Housing slump going from bad to worse

Despite widespread claims by housing pundits that Vancouver’s housing market is recovering from last year’s slump, the incoming data continue to show home sales floundering. More importantly, home sales in the much larger Toronto market have tumbled far more sharply than in Vancouver, falling by more than 40% in only three months. Accordingly, housing activity will weigh heavily on second-quarter GDP growth, and that might only be the tip of the iceberg.