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Toronto Is Booming!

The board also noted that competition for homes remained fierce, continuing to push the average home price across the region up 33 per cent year over year — a rise of 29 per cent on the board’s benchmark index.

https://www.thestar.com/news/gta/20...e-to-ease-overheated-market-report-stays.html

Toronto’s residential housing market showed no signs of cooling last month, with the average sale price soaring a record 33 per cent from a year ago, pushing the cost of a detached home in the heart of the city to almost $1.6 million.

http://www.financialpost.com/m/wp/n...ouse-to-almost-1-6-million&pubdate=2017-04-05
 
Rickson9 said:
The board also noted that competition for homes remained fierce, continuing to push the average home price across the region up 33 per cent year over year — a rise of 29 per cent on the board’s benchmark index.

https://www.thestar.com/news/gta/20...e-to-ease-overheated-market-report-stays.html

Toronto’s residential housing market showed no signs of cooling last month, with the average sale price soaring a record 33 per cent from a year ago, pushing the cost of a detached home in the heart of the city to almost $1.6 million.

http://www.financialpost.com/m/wp/n...ouse-to-almost-1-6-million&pubdate=2017-04-05
Click to expand...


So do you recommend I buy a house in Toronto area? And if yes how much appreciation do you expect in the next few years?

I'm wondering because if prices keep going up 33% y/y, in a couple years I'll end up with around 100% up which is very tempting.

What do you think?
 
Once the federal, Ontario and Toronto governments start slapping on additional taxes, levies and/or registration requirements we will see some significant cooling. This frenzy is in the lead up to these likely additional taxes ( capital gains taxes, flipping taxes, land transfer taxes, foreigners taxes, additional registration requirements etc ) - just like MetroVancouver. Buying now may mean 25% lower prices in a year or two like in many higher end home - usually foreign money financed - like we saw in MetroVancouver.

Proceed with caution. If you buy, and can't hold with cash flow, you might get stung.
 
I had been in the market for a new home since 2010 and this actually started back in 2009/2010.... and it just kept getting worse and worse. Thank God we took the plunge and finally bought in 2012.

If govts don't get involved this would continue for no one knows maybe until interest rates go up?

But I am cautious now due to them deciding to do something about this.
 
ThomasBeyer said:
This frenzy is in the lead up to these likely additional taxes ( capital gains taxes, flipping taxes, land transfer taxes, foreigners taxes, additional registration requirements etc ) - just like MetroVancouver. Buying now may mean 25% lower prices in a year or two like in many higher end home - usually foreign money financed - like we saw in MetroVancouver.
Click to expand...

Government intervention had virtually no impact on Vancouver real estate prices and it won't be any different in Toronto.

http://www.financialpost.com/m/wp/p...mand-picking-up-as-prices-begin-to-rise-again

Toronto is the only Canadian city known around the world, a diverse economy, with plentiful jobs. It's natural that Toronto real estate is booming because everybody wants to live here.

That's why the need for housing is in massive demand in Toronto.

http://myreinspace.com/threads/core-housing-need-remains-high-in-peterborough-and-toronto.36888/
 
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Unlike your untrue ( deliberately provoking ?) assertions the 15% tax in BC resulted in substantially less listings and lower prices by 10-20% in certain market segments in the Vancouver area. Condos by and large were unaffected but middle to higher end homes took a deep dive after a 2-3 year frenzy resulting in 30-40% price increases where foreign money was concentrated. I'd expect a similar result in GTA if and when it is introduced in the lead up to the 2018 provincial election in Ontario in a desperate attempt by the ON Liberals to grab a few extra seats.
 
Let's just say if the same thing happens in Toronto, it won't make a difference.
 
Ontario to follow BC's lead in rent control and foreign buyer speculation, with likely similar results http://business.financialpost.com/p...rent-control-in-16-point-plan-to-cool-housing

In BC the results were:
A) money shifted to other cities, notably Victoria causing 50% price increases there. Similar effects will happen in Ottawa, Kingston, KWC, London or Montreal if only Golden Horseshoe cities will be affected by this new foreigners tax.

B) money will shift into other asset classes such as commercial, farmland, vineyards, retail, office or industrial.

C) high end home prices and those with high foreign money concentration will drop the most, 15-20%, whereas condos and mid to lower priced homes will not shift much

D) volume will drop immediately as foreigners re-assess the situation ( and that is why realtors do not like these measures at all )

E) in a year or max. two prices will be like today
 
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Kindly re-read A) to D) above to see impact in Ontario based on BC evidence .. not just E !

People have drowned in rivers one foot deep on average. (TM)
 
I agree. Minimal impact.

It's also interesting with regards to the 15% tax that corporations and foreign students are exempt. If I were a "foreign buyer" I can think of a couple ways to avoid this meaningless tax.

Toronto real estate prices will continue to climb.
 
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