More Toronto homeowners are trying to pull a fast one as uncertainty hovers over the city following the Ontario government’s introduction of new measures to bring the housing market under control.
In April, the Ontario government introduced 16 new measures to cool the market and this has resulted to a significant change in the market.
According to statistics from the Toronto Real Estate Board about 30% of homeowners in the Greater Toronto Area will possibly list their homes in the market in this year with about 15% claiming the new government measures as the main reason why they are making this move.
The TREB Director of Market Analysis Jason Mercer went on to explain that it is an amazing fact that 80% of people will be changing their home types rather than move out of the housing market entirely. Prior to this, it might have seem that homeowners are moving out of the market as a result of increasing market prices, but this is not the case, as many are merely relocating to other markets or changing their home types.
Latest figures from the TREB also highlights the effects the measures taken by the government are having on the housing market. Home sales in the areas plummet by 20.3% in May, a month after the measure was taken while on the other hand, new listings are on the increase with a 42.9% increase with the average home price also increasing by 14.9%.
As the market progresses and some home buyers, especially first-time buyers are waiting out for a while to see what comes next as they are uncertain of the effects the measures will have on the market.
The number of first-time buyers trying to buy homes has decreased from last year with only 40% stating they have plans to buy a house while last year, the figure was at 53%.
Mercer went on to state that first-time buyers have taken a wise decision to hold on buying a home for the meantime as the new measures such as the Ontario Fair Housing Plan can affect buyers in a great way.