The average selling price was up $140,552 from a year ago, with
the average selling price in the region being $770,745 in
Areas that saw more growth were low-rise, detached,
semi-detached and town homes with 26-28% increases compared to last
year. Even condos increased by 14.5% from the year before. It has
been confirmed however, that there still is a relatively low number
of listings in the market, half of what was available last year
yet, the TREB still believes this year will see gains. Gains
between 10-16% and single-family homes with the biggest demand.
Is this increase due to the amount of foreign buyers in our
A question that has been asked for some time now – we now
have some data to provide an answer, for the time being. A recent
article answers the above question as, no.
TREB calculated that 4.9% of transactions involved offshore buyers
– further proving that it is the lack of supply in the
region, not foreign investors.
There are, however, real estate agents that challenge the above
number. Some realtors can account that 20-30% of their business
comes from foreign transactions.
This also causes a comparison of Toronto to Vancouver to be
discussed, where they underestimated the amount of foreign
ownership – which resulted in the tax that brought sales down
40% in January alone compared to a year earlier. People suspect the
"Vancouver experience" is going to happen here.
In addition we now have a new President of the United States,
Donald Trump. Take a look at our previous article addressing the
Canadian real estate market amid a Trump takeover, where we
discuss the market in 2017 and what might happen now that Donald
Trump is president.
The findings were that Toronto was ranked 13th on the
most unaffordable cities in the world list, prices have climbed 22%
in Toronto, and Americans flooded the real estate pages in Toronto
looking for family homes in the city, not vacation homes. Most
importantly, it is too early to tell what will happen to our market
now that Trump is in office.
With data showing there was minimal involvement with offshore
investors, Americans looking for homes in Canadian cities now that
Trump is president, and the very limited supply of homes in the
city of Toronto – the fear is it will continue to increase
because of the lack of supply and increase in demand.
All that is occurring in Toronto's market – the
foreign investment, lack of supply, high demand, amount of money
home buyers have on hand to initiate bidding wars and the seemingly
never ending rise in home prices – William Strange, a
professor of business economics at U of T can only sum it all up by
saying, "it's the craziness of the market."
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Yet another layer of policies and guidelines are coming to the City of Toronto. The City is undertaking an examination of how new multi-unit housing in high-density communities can better accommodate families.
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