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“A lot of people saw prices going up considerably and were probably like, ‘Maybe this is my time to cash out,”‘ Alexander said.

“But buyers have taken a big pause and they’re not willing to pay as much as people were back in the first quarter, and sellers are still expecting those numbers, so I think that’s why we’re seeing a huge spike.”

There have been growing worries that overheated prices in Vancouver and Toronto could be a problem for the broader economy, especially if there is a sudden fall in housing prices sparked by higher interest rates.

The real estate board also revised its outlook for the year downward to between 89,000 and 100,000 transactions and is expecting that the average selling price in 2017 will be up by 13 to 18 per cent.

Mercer said the board decided to change its outlook in light of the recent housing changes and growing expectations that the Bank of Canada could raise its interest rate next week for the first time in seven years.

Provincial Finance Minister Charles Sousa wasn’t available for comment, but in a statement he said he was encouraged to see that supply is increasing and annual price growth is moderating — signs he said that the measures are having their desired effect.

Toronto Mayor John Tory said people who purchased properties in April and therefore may have lost money “on paper” should not focus on short-term fluctuations.

“You can’t look at blips up and down,” Tory said. “You have to look at the long term. And I think people who have invested in real estate in Toronto are in an excellent long-term position. This is a growing, dynamic city that is a magnet for people along the world and investment from around the world.”

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