New rules did not succeed in cooling down Toronto housing markets!
The recently implemented changes to federal housing rules have seemingly little effect on the record-breaking rates of home price growth in Canada’s hottest markets, as owning a residential property in and around the Greater Toronto Area has only gotten more expensive last month.
Fresh data from the Toronto Real Estate Board revealed that the average selling price in the GTA climbed by 22.7 per cent year-over-year (up to $776,684) in November, with the greatest increase observed in the Durham Region at 25.4 per cent.
The new rules have been neutered by the fact that they glossed over the supply factor, according to TREB director of market analysis Jason Mercer said.
“Recent policy initiatives seeking to address strong home price growth have focused on demand. Going forward, more emphasis needs to be placed on solutions to alleviate the lack of inventory for all home types, especially in the low-rise market segments,” Mercer stated in the report, as quoted by CBC News.
“Would-be home buyers continued to be frustrated by the lack of listings, as annual sales growth once again outstripped growth in new listings. Seller's market conditions translated into robust rates of price growth,” TREB president Larry Cerqua added.
Overall, the region saw 8,547 homes sold through the Multiple Listing Service in the same month, an indication that the regulatory changes might have not succeeded in cooling down Toronto housing markets as much as initially hoped by the authorities.
“The [new] rules did not take out a lot of investors who are the ones coming in and bidding aggressively. They are looking for long-term growth whereas the everyday resident just wants to get into the market,” Whitby real estate agent Paul St. Aubin said.
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Until next time,
Your mortgage expert Evgeny Kamenskiy