What market onlookers are expecting from the government

Toronto scorching market is seeing supply dwindle on a daily basis regardless of the fact that about 70,000 units are currently being developed. But according to the Ontario Real Estate Association, this might not be sufficient for the rising demand of homes from buyers. The ongoing rapid price increases has prompted economists to alert policy makers to consider the housing crash in the 80s. Homes are presently scarce in the city and ht available homes on the market are above the reach of even some wealthy buyers with the average home standing at $1.5 million. The projection made by the Canadian Mortgage and Housing Corporation for 2018 projected the average home price to be $820,000 but ironically, the current average price in the city has outpaced the figure estimated for 2018.
This is just a indication of the rapid level home prices are increasing in the Greater Toronto Area. Further price increase is expected as more people desire to stay in the city despite the high cost of living. But although one might suggest that all the issues will unfold for themselves, market onlookers are expecting a whole lot from the government. Dana Senagama, principal of market analysis for the GTA at the CHMC stated that the housing market in Toronto is now at a crucial point where one cannot determine which direction the market might decide to take, but is hopeful that by 2018, there will be a slowdown. According to Senagama, the market cooling will be as a result of lack of affordable homes which pushes buyers out of the market resulting to price declines, higher debt ratios with new mortgage regulations to cut down on demand and also the create of more than 69,000 units in the market will likely cool market prices.
Onlookers are also hopeful that the government will urge provinces to embark on planning straitjacket especially in developing areas. The government is also to cut down on land restrictions and also create faster building permits but approvals but according to Jason Mercer, it is a very critical aspect which cannot be rushed. But a government spokesman noted that this is not the case. He stated more residential homes were approved than were constructed between 2011 and 2015 hence the province is taking a closer look into why those units are not out in the market.