There's more evidence Vancouver's housing bubble is bursting

Home sales in Vancouver plunged.

The latest data from the Real Estate Board of Greater Vancouver showed that home sales in the metro area collapsed by 32.6% year-over-year to 2,253 homes in September, according to Reuters.

The board noted that this “marked a return to historically normal levels,” according to Global News.

This follows last month’s drop of 23% year-over-year, which analysts argued suggests that the “Vancouver market may be softening.”

It’s worth noting that Vancouver’s home sales fell by 27% year-over-year in July, which suggests that the recent tax implemented on foreign buyers might not be the primary catalyst in August’s drop, argued a Capital Economics team back in September.

And, on Monday, the Vancouver Sun reported that “Federal finance minister Bill Morneau “announced the changes Monday that would target foreign buyers and over-leveraged Canadians and appear designed to slow down a frenzied real estate market in Vancouver and Toronto.”

The Canadian dollar is down by 0.4% at 1.3175 against the US dollar as of 10:22 a.m. ET.

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