Foreign buyers not to be blamed for Toronto’s pricey homes

Foreign buyers in Toronto only accounted for 5% home purchases in 2016, according to a November Ipsos study conducted by Toronto Real Estate Board agents, hence it would be unjust for foreign buyers to be blamed for the expensive homes in Toronto.

In the total 113,133 residential sales made in 2106, foreign buyers accounted for only 5% with most of these buyers purchasing homes for themselves or family members.
Data also indicated that close to 25% of foreign buyers bought homes as rental investments.

As housing conditions become a problem in Toronto many are casting baseless blames on foreign buyers and according to the board, introducing a 15% tax in Toronto will cause more harm than good to the market and also drive away potential foreign buyers.
With a high supply of homes in Toronto, home prices are expected to grow between 10% and 16% by the end of the year.

Home prices by the end of the year would be about $825,000 which is a 20% increase from the previous year.
Although the average price for condominiums will also be tight, detached and semi-detached houses and townhouses will have the highest growth this year.

First-time buyers this year are expected to come into the market at a higher rate in comparison to the previous year.
Home prices have made many home buyers to change their buying trends or ways of making down payments. Some buyers have also put aside their ideas of buying homes and are renting instead until home prices normalize.
The supply end of the market still remains a problem and there is not much hope that it will improve in the coming months.