“The Toronto market is a very unique animal,” said Steve Arruda, an investor and Realtor at Keller Williams Neighbourhood Realty.
“It’s very resilient. Now, with the lower rates [from the Bank of Canada], the unbalanced market is going to continue.”
Potential obstacles include the mortgage changes brought in by the former Finance Minister in 2012, the addition of a land transfer tax on properties in Toronto,
and the changes to the timeline necessary to qualify for the HST rebate.
“There has always been some type of hurdle,” added Arruda. “But none of those roadblocks have slowed the market down at all. It’s like throwing a pebble into the river trying to slow down the flow.”
And, unsurprisingly, the Toronto housing market
continues to be very competitive with lots of bidding wars.
“Land is finite so they’re not building more single-family homes downtown,” said Arruda. “So it’s very competitive, but it’s been that way for a while.
“Now that the interest rates have been reduced, it’s become more heated, making affordability a lot easier for some people who were barely able to afford property. Now they can.”
Find out more about median house prices, capital growth and demographics in Toronto and other Canadian cities with CREW’s free online Investment Hotspot tool.
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The Canadian real estate market has faced a number of roadblocks in recent years, many designed to slow down a heated market – but these obstacles don’t seem to have had any impact on investors in