GTA’s performance belies moderating effects of regulatory changes—local brokers

The latest numbers from the Toronto Real Estate Board revealed that GTA real estate continues to run on overdrive, in an apparent demonstration that the recently implemented changes to federal mortgage rules do not have any cooling effect on the market.
 
In a November 28 press release, Alex Moloney and Franco Dinatale of Right at Home Realty Brokerage Inc.’s Toronto House Team noted that a major contributor to the city’s market strength is the imposition of the 15 per cent foreign home buyer’s tax in British Columbia earlier this year.
 
“It had caused Vancouver home prices and sales numbers, especially for high-end detached homes, to slide. As foreign buyers leave Vancouver to avoid paying the 15% tax in B.C., they are turning to Toronto to invest their money in real estate, including luxury single-family homes and condos,” Moloney explained.
 
“Although it is still early, I have yet to see any sign that the new mortgage rules or closing the foreign buyers’ capital gains loophole have made any impact on the market,” he added. “It remains to be seen whether any of the measures introduced by the Federal government will have any impact on the Toronto housing market over the long term.”
 
Data from TREB showed that GTA home sales in October increased by 11.5 per cent month-over-month, up to 9,768 units. The average selling prices for all housing types spiked more dramatically, up by 21.1 per cent month-over-month to $762,975.
 
“Stricter stress tests and mortgage requirements may postpone, and even prevent, some low-income first-time buyers from entering the market, but I don't see it causing much of a ripple. There are way too many positive factors at play driving Toronto real estate. Our biggest problem right now, is that there are more buyers than listings.”


Related stories:
TREB president on the Toronto market’s prospects
The cautionary tale of the hopeful buyers in a church-condo conversion project

 

Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate

COMMENTS

  • by LanceH 2016-11-30 10:50:18 AM

    The socialists always claim they're out for the little guy. Yet, this policy, like most of their policies, hurt the little guy the most.
    Yet people vote for them. They never learn !!

Get help choosing the best mortgage rate

Just fill in a few details, and we'll arrange for a Mortgage adviser to help you find the best mortgage for your needs

  • How soon do you want a mortgage?
  • Name
  • Where do you live?
  • Phone number
  • E-mail address

Industry news

Submit a press release

Poll

Do you invest in commercial properties?