Updated numbers from the Toronto Real Estate Board revealed that the average selling price in the GTA ballooned by 22.3 per cent year-over-year (up to $770,745)—a development that has been fuelled by the delays and the red tape surrounding the construction of new homes, the head of a builders’ organization argued.
Canadian Home Builders’ Association president Bob Finnigan stated that Toronto, in particular, is hit hard by the fact that housing development timelines take too long.
“If the lands we’re allowed to build on can be built on sooner, that could affect supply,” Finnigan said in an interview with BuzzTV last week. “In my hope [that] would just stop the rapid increase in pricing, because that’s a direct result of supply and demand.”
The comments came in the wake of Scotiabank president Brian Porter’s observation that Toronto is slowly but surely trending towards a correction similar along with Vancouver.
“We’re concerned from the perspective that trees don’t grow through the sky, and markets will correct at some stage here,” Porter said on March 1. “There’s population growth, immigration, there’s the time that it takes to develop a property in terms of getting through the government processes — all those different types of things here, so this is a complicated issue.”
“I think we’re going to need some time to see [recent mortgage rule changes] take hold and we’ll see that see through the spring mortgage season.” Porter added.
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