Based on a focal look into the housing market in Toronto, the analysis concluded that the province is at a “crossroads”. Dana Senagama said; “I think we’re at a critical time in terms of the market and hard to tell where exactly it’s going to turn, but I do think things will start to slow beginning in 2018.” In a current report on the anticipated growth of homes, TD Economics anticipate the increase of home price to cool from at least three to five per cent by 2018. Although it still amounts to something, it’s slower than the anticipated increase of 20 to 25 per cent which is expected in this year.
The main influence towards the cooling are introduction of new supply into the market, with construction of about 69,000 through the GTA, issue concerning lack of affordability which is driving most out of the market, demand lowered by latest mortgage rules and increased cost of borrowing. The homes won’t be complete this year, and according to the Ontario Real Estate Association demand won’t be satisfied even if the supply goes up.
Tim Hudak, CEO of the association said; “I’m happy to see CMHC numbers show more housing coming to the marketplace. In the city of Toronto, we have less than 1,000 detached homes for sale, and you have a lot of people who want those homes so you get these huge bidding wars.” The association suggested for the municipal land transfer tax to be revoked in the City of Toronto, saying it would cause supply to go up. The buyer pays the tariff charged by the province when they purchase a home in Toronto. Hudak said; “It’s become kind of the crack cocaine of taxation. We’re the only city in North America with a double land transfer tax.”