A warning for homeowners in the GTA – from the Canadian Real Estate Association’s chief economist.

Gregory Klump says homeowners should brace themselves for a possible tax on speculative home purchases in the GTA – just as the market begins to recover from the most recent round of changes.

Ontario brought in a number of policies in April aimed at cooling runaway house prices in hot market areas – including a 15 per cent tax on foreign buyers – and expanded rent controls.

Meanwhile – the Teranet index says home prices in Toronto were up 3.6 per cent in may – another record – even though sales dropped by 20.3 per cent in the GTA the month after new rules took effect – suggesting that the measures are having the desired impact.

But some economists say the effect may be short-lived like it was in Vancouver – where the introduction of a foreign buyer tax caused a temporary pause in activity before picking up again.