But when REINZ released their February data we saw a rise of 5.3% reported. The frenzy of buying which drove that unusual surge was still there, though slightly weaker, in March when the average price gain was 2.7%. The chances are high that the April gain to be reported mid-May will be very small and might even be negative.
In fact, it would not at all be surprising to see a few months of average price falls over the remainder of this year. This is because the 28% rise in house prices around the country since May is not a pace of rise one could reasonably expect to continue, and the government on March 23 took a range of measures which they hope will cool things to a high degree.
The most significant of those changes was removal of interest expense deductibility for investors buying existing properties, and the same removal for those already holding properties by this time in 2025. The change means that the average investment property will now cost perhaps $5,000 more to hold than was previously the case for those investing with a mortgage.