Toronto!!! Yes, the city feels great in this New Year.
Reasons can be varied, but one thing is for sure; the real estate market of the city is all time high and getting larger with every passing year. Designated as the most populous city of Canada, house for sale Toronto is making all news these days. Predictions after predictions, real estate gurus have been eagerly waiting for the latest development in the market prices. Realtors, Buyers, and sellers all have geared up the in anticipation of better future in this New Year, especially in the Greater Toronto Area. House for sale or rent in Toronto is majorly driving real estate prices to double-digit at the start of 2017.
A small pond with too many fishes.
Lack of house on sale in Toronto is the major rider driving the soaring real estate prices in the city. The end of the year 2016 marked the lowest number of listings as indicated by Jason Mercer, TREB’s director of Market analysis. This was the lowest in the past 16 years.
Moving forward in this regards, assumptions of a shortage of listings is expected, hence a rise in prices again. The TREB further predicted the soar in average housing prices from the last year could be as high as $95,078 with impact mainly on the low-rise type housing. The double-digit rise in the property prices could fall anywhere in between 10-16 percent.
The board has called for all sorts of firms to fuel the supply of property in Toronto.
Involvement of foreign flock of investors seems Jittery!!!
Folks, whether sooner or later, there is some buzz of the introduction of Foreign Buyers tax for the GTA region.
Let’s Flashback to Last August at Vancouver; introduction of Foreign Buyers tax. Well, the city did witness a fall in sale of houses to a rather concrete level, to be very precise 30-40 percent decline in monthly sales. So, it is imaginable that such buzz in GTA would send wrong signals to foreign buyers who constituted 4.9% of last year’s sale, thereby affecting the real estate market in a not so favorable way.
The Building Industry land Development Association’s take is no different from that TREB says and it backs the latter’s view owing to the lack of inventory.
The Past is the foundation of the future
Let us have a look at property prices report of TREB for December 2016 which will trace the road map for 2017
Average property price for
a. Detached houses >>> $ 1,286,605
b. Semi-Detached. >>>>> $808,920
c. Row/Town >>>>> $927,471
d. Condo Town >>>>>>>> $569,864
e. Condo APT >>>>>>>> $466,592
Any aspiring purchasers/investors in real estate can predict what’s in store using the suggested rate of increase i.e. 10-16%
The Toronto and GTA market is all red hot in this New Year. The TREB is concerned with the fewer options available. For keeping right track and analysis of the real estate market it hired the survey firm, Ipsos. The poll made it clear that foreign investors took a 5% share of the market and 2% of them were driven by a tax levied on Vancouver.
The lack of space in the city has to be dealt, for this association and leaders from Ontario are laying down suggestions, the latest being by Mr. Hudak who called for a reassessment of the Greenbelt Expansion plan by the government on the outskirts of GTA. The proposed expansion did impose an unsaid restriction on the Builders who could help increase the housing inventory.
Overall, amongst the hazy situation on laws and policies, rate shoot is guaranteed. The drive to buy or rent property in Toronto is high and sellers are definitely going to profit the way road map of the housing industry is being carved.
Lest double-digit rates increase lead to the dreaded bubble burst. The lawmakers must be cautious with every step they take, just a thought!