Home buyers in Toronto are finding it difficult it difficult to keep up with the pace of rising home prices and the current bidding wars going on in the city is even more frustrating. In Ontario both housing and rental cost have increased over the years and the Finance Minister Charles Sousa had promised to take steps to cool Ontario’s overheated housing market. It has become quite evident that supply is a huge problem which has prompted Sousa to precipitate actions to address the issue. In his upcoming spring budget, Sousa promises to make houses and condos more affordable.
Sousa however felt let down by the previous week’s federal fiscal blueprint which did not take any measure towards addressing the housing issue. Although there are several options to choose for, the city will however make decisions that will best suite the province. The average home price in Toronto real estate market increased to $1.5 million and this has increase on the fears of first-time buyers and millennials who cannot afford to buy a home and are taking on more debts which are very detrimental if there is to be any slight change in interest rates.
Even though many are suggesting that a similar tax like the one in Vancouver on foreign buyers to be implemented in Toronto, Sousa however proposes that the city will take measures that will not have negative impacts on the city and also other neighboring markets. He went on to respond to the increasing claims that there is a lack of supply in the city as a result of increasing bidding wars stating that the reason for the high demand in the city is cause by several factors.
In the projection for this year, home prices in the city are expected to rise between 20 and 25% with a further 3 to 5% increase in 2018. One thing the minister was unable to achieve was his proposition for the federal government to levy an additional capital-gains tax on the sales of homes that are not own by residence. This will help curb speculators in the city who purchase home as investments to make fast profits. But Sousa is hopeful that the federal Minister Bill Morneau will consider his proposition.