Homes sales in Toronto have fallen about 19 percent compared to last year dovetailing with government policy changes, but the Toronto Real Estate Board is remaining optimistic.

The smoking gun on the market’s slump seems to be a 15 percent tax on foreign ownership which the provincial government implemented in April, according to Mansion Global. The new policy may be deterring new buyers especially in the luxury market where home sales of $1.5 million or more fell by almost 40 percent year-over-year.

But the average prices are continuing to rise with house prices in October hovering around $608,000, a 2.3 percent rise compared to the previous year, while the volume of sales was also up about 12 percent.

As a result, the Toronto Real Estate Board is not worried; board president Tim Syrianos explains his rationale to Mansion Global by saying last year’s record makes this year look bad. His comments come in spite of new federal mortgage rules being in the pipeline for next year and Toronto’s contemplation of a new tax on uninhabited properties.

[Mansion Global] — E.K. Hudson