The Real Estate Market is going to be coming back STRONG, sooner then later!
Thursday Jul 27th, 2017Share
It it seens that there is a recent downturn in Toronto's real estate market, brought on after Ontario introduced measures this spring including a foreign buyers' tax, is expected to be brief, the federal housing agency said Wednesday.
There has been a recent decline on average prices in the Toronto are. Prices fell an average from about $900,000 in April to just under $800,000 last month, according to data from the Toronto Real Estate Board.
The good news is that the price average should pick up again due to supply constraints and a stronger economy, this is stated by Canada Mortgage and Housing Corp.
Dana Senagama, CMHC's principal market analyst for Toronto, said during a conference call to discuss the agency's latest housing market assessment the following: "The response we're seeing in the Toronto market seems almost emotional and a knee-jerk reaction to some of the changes, which suggests that these impacts will be short-lived,''
It is also noted that the provincial government's measures, which were retroactive to April 21, include a 15 per cent tax on foreign buyers in the Greater Golden Horseshoe region, and along this there was expanded rent controls and legislation allowing Toronto and other cities to tax vacant homes. This was a plus for the too many speculative buyers that were in the market.
"If job creation continues in Toronto ? and the economy continues to fuel the housing demand, we can expect some of the pressures on house prices in Toronto to resume,'' said Bob Dugan, CMHC's chief economist.
When looking at what occurred in Vancouver, which experienced a real estate slowdown following the implementation of a tax on foreign buyers a year ago, it is notcied that there is signs that that the city's housing market is heating up again.
So for those wondering how low it is going to get,,,well it is not. Toronto and surrounding areas are going to get back up there and it is a matter of pur supply and demand.