• Skip to secondary menu
  • Skip to content
  • Skip to primary sidebar
  • Skip to footer

Central Toronto Real Estate - Max Seal Blog

Central Toronto Real Estate, Toronto Real Estate, Toronto Homes For Sale, Search toronto homes for sale, Max Seal, Broker, iPro Realty Ltd

  • Central Toronto Real Estate – Max Seal Blog
  • Home
    • About
  • Toronto Home Evaluation
  • Central Toronto Real Estate Blog
  • Contact Max
  • Search Toronto MLS
  • Toronto Real Estate Posts
  • FSBO Expired Listing Seller Free CMA
  • Seller
  • Buyer
  • Privacy Policy

The problems of runaway house prices in Toronto

February 8, 2017 by Central Toronto Real Estate Blog

image-21-house-12-screenshot

 

We need the facts about the extent to which foreign buyers are driving up real estate prices in Toronto.

It’s time for the federal and provincial governments to collect the necessary data on the sale of housing to foreign-based buyers.

Without reliable data and figures, it’s impossible to set policy, protect the dream of home ownership for Canadians and avoid a potential real estate bubble and subsequent marketplace retrenchment in Toronto that could impact the entire Canadian economy.

 

What we do know is that the dream of buying a home in Toronto, and throughout much of the GTA, has become so expensive, that many people, especially the young, will never see that dream become a reality.

The housing market, most notably in Toronto but now spreading to Hamilton and other metropolis, has discovered real estate prices run sky high.

The Toronto Real Estate Board predicts 110,000 homes will be sold in 2017, with the average cost surging to $825,000.

The Canadian Mortgage and Housing Corporation says it’s concerned about galloping housing prices.

“We continue to detect strong evidence of problematic conditions in Canada” wrote Bob Dugan, the CMHC’s chief economist.

 

“Price acceleration in Vancouver, Victoria, Toronto and Hamilton indicates that home cost growing may be driven by speculation as it is outpacing what economic fundamentals like migration, employment and income can support.”

Not surprisingly, many in the real estate industry do not crave a tax on foreign-based buyers.

Tim Hudak, CEO of the Ontario Real Estate Association, says the lack of housing supplying is the main reason behind surging prices in and around Toronto, not foreign buyers.

The Toronto Real Estate Board commissioned research studies by Ipsos which reported less than 5% of home marketings in Toronto was set to foreign buyers.

But other reports paint a different picture.

 

Vancouver has consistently led the Canadian real estate market.

However in 2016, the British Columbia government introduced a tax on foreign customers who purchased real estate in Vancouver.

Bank of Montreal economists have studied the market trends in Vancouver and Toronto since the B.C. tax was implemented.

“We have enough history now to distinguish the clear divergence between Vancouver( down) and Toronto( still straight up ),” wrote Douglas Porter, the BMO’s chief economist

It seems clear some foreign-based customers who previously invested in Vancouver real estate are now buying in Toronto (or Victoria).

One real estate agent in Toronto who told me 11 of the last 15 houses he sold in 2016 was bought by foreign-based buyers.

He said they were either investments or the purchaser craved a home for their children to go to high school, which is included in the costs of property taxes.

 

To be sure, many factors are driving house prices to all-time highs aside from foreign customers, including low mortgage rates and low unemployment.

What is unclear is the path forward to make sure our children can render their own homes.

We also need to ensure the housing marketplace have continued attract new immigrants who, rather than speculating in Canadian real estate, want to move here to become both citizens and to live, study and pay taxes.

It is past time for our government to act to prevent foreign concerns from overheating the Toronto real estate market, which could eventually harm the entire Canadian economy.

But first we need to know the facts and the facts, to this phase, have been sorely lacking.

Finding out what those facts are, before deciding what to do, is the responsibility of our governments.

 
Source: Toronto Sun

 

Please follow and like us:
RSS
Follow by Email
Facebook
fb-share-icon
Twitter
Tweet
Pinterest
Pinterest
fb-share-icon
LinkedIn
Share
Totonto Market Evaluation Online

Easy Related Posts

Central Toronto Real Estate TRREB Released January, 2020 Resale Market Figures

Central Toronto Real Estate TRREB Released January, 2020 Resale Market Figures

  Central Toronto Real Estate TRREB Released January, 2020 Resale Market Figures   Toronto Area REALTORS® reported 4,581 ...read more

Central Toronto Real Estate TREB Released December, 2019 Resale Market Figures

Central Toronto Real Estate TREB Released December, 2019 Resale Market Figures

  Toronto Real Estate Board (TREB) reported that December 2019 residential sales reported through TREB’s MLS® System ...read more

Central Toronto Real Estate TREB Released November, 2019 Resale Market Figures

Central Toronto Real Estate TREB Released November, 2019 Resale Market Figures

  Central Toronto Real Estate TREB Released November, 2019 Resale Market Figures   Toronto Real Estate Board (TREB) ...read more

Central Toronto Real Estate TREB Released October, 2019 Resale Market Figures

Central Toronto Real Estate TREB Released October, 2019 Resale Market Figures

  Central Toronto Real Estate TREB Released October, 2019 Resale Market Figures   Tоrоntо Real Eѕtаtе Board аnnоunсеd ...read more

Central Toronto Real Estate TREB Released September, 2019 Resale Market Figures

Central Toronto Real Estate TREB Released September, 2019 Resale Market Figures

  Central Toronto Real Estate TREB Released September, 2019 Resale Market Figures   Toronto Real Estate Board published ...read more

Central Toronto Real Estate TREB Released August, 2019 Resale Market Figures

Central Toronto Real Estate TREB Released August, 2019 Resale Market Figures

  Central Toronto Real Estate TREB Released August, 2019 Resale Market Figures   Toronto Real Estate Board (TREB) ...read more

Canada Shows Signs of Housing Bubble, Bloomberg Reports in 2019

Canada Shows Signs of Housing Bubble, Bloomberg Reports in 2019

  Canada and New Zealand are the most vulnerable economies to a correction in house prices, ...read more

Toronto housing slowdown reasons Bank of Canada showed

Toronto housing slowdown reasons Bank of Canada showed

  Toronto housing slowdown reasons Bank of Canada showed   The Bank of Canada found the prices of ...read more

Interest Rate goes up adding to homebuyers’ challenges, more first-time buyers will not qualify

Interest Rate goes up adding to homebuyers’ challenges, more first-time buyers will not qualify

  The interest rate up and third Bank of Canada rate hike this year could shut ...read more

Filed Under: Toronto Buyer Posts, Toronto Mortgage Posts, Toronto Real Estate Posts, Toronto Seller Posts Tagged With: foreign buyer tax, housing bubble, housing mortgage, housing speculation, price appreciation, shortage of listings

Primary Sidebar

Central Toronto Real Estate – Max Seal Blog

Max Seal, Broker,
Call 647-294-1177
Email: email to Max

iPro Realty Ltd. Brokerage
1396 Don Mills Rd, #101, Bldg E, Toronto, Ontario, M3B 3N1

Totonto Market Evaluation Online

TORONTO HOME EVALUATION ONLINE

Font Resizer

  • A A A

Call, text, email Max 647-294-1177

Call Max Seal at 647-294-1177 if you are thinking to sell your upscale or average home in Central Toronto communities like Bedford Park, York Mills, Lawrence Park, Forest Hill, Davisville, Summerhill, Yorkville, Annex, Rosedale,  Leaside and Don Mills.  Please click the link for a FREE Home Evaluation. No obligation.

Search Blog Posts

Recent Posts

  • Happy New Year 2025
  • Central Toronto Real Estate TRREB Released July, 2023 Resale Market Figures
  • Central Toronto Real Estate TRREB Released April, 2023 Resale Market Figures
  • Central Toronto Real Estate TRREB Released March, 2023 Resale Market Figures
  • Central Toronto Real Estate TRREB Released February, 2023 Resale Market Figures

Recent Comments

  • Central Toronto Real Estate Blog on 7 Great Hamstring Stretches
  • lee on 7 Great Hamstring Stretches
  • Enrique Pasion on Stop Worrying Using This Simple Brain Hack
  • Joefine on Easy Weight Loss Workouts for Beginners in Toronto
  • Rumiel Daymiel on Easy Weight Loss Workouts for Beginners in Toronto

Pages

  • Central Toronto Real Estate – Max Seal Blog
  • Home
    • About
  • Toronto Home Evaluation
  • Contact Max
  • Central Toronto Real Estate Blog
  • Search Toronto MLS
  • Toronto Real Estate Posts
  • FSBO Expired Listing Seller Free CMA
  • Seller
  • Buyer
  • Privacy Policy
Totonto Market Evaluation Online

TORONTO HOME EVALUATION ONLINE

Categories

Archives

Calendar

July 2025
S M T W T F S
 12345
6789101112
13141516171819
20212223242526
2728293031  
« Dec