TORONTO, ON--(Marketwired - November 28, 2016) - Toronto realtors Alex Moloney & Franco Dinatale of Right at Home Realty Brokerage Inc.'s Toronto House Team (www.torontohouseteam.ca) report that the Toronto housing boom is still going strong and that recent measures introduced by the Federal government to slow down the market have had little effect so far. The Toronto residential housing market continues to hit record highs as October sales figures confirm another hot month. Stats from the Toronto Real Estate Board show 9,768 homes sold across the GTA in October, an increase of 11.5 % from the previous month. House prices also continued to rise. The average selling price for all types of residential real estate in the GTA in October was $762,975, an increase of 21.1%. The average sale price of a detached home in the city of Toronto is now over $1.3M.
Recent measures taken by the Federal government to stabilize the housing market include stricter rules for foreign buyers and mortgages leaders. As of Oct 17, 2016, all high-ratio mortgages (down payments of less than 20%) now must now qualify for the 5-year Bank of Canada qualifying mortgage rate and not the actual mortgage rate applied for. The government has also blocked a loophole used by some foreign buyers to avoid paying capital gains tax on properties sold in Canada by claiming them as primary residences. Further government measures to ease the housing market come into effect on November 30, 2016, when high and low ratio insured mortgage eligibility requirements will be streamlined. On that date, mortgage loans that lenders insure using portfolio insurance and other discretionary low loan-to-value ratio mortgage insurance must now meet the same stricter criteria applied to high-ratio insured mortgages. Now a minimum qualifying credit score of 600 and a maximum amortization period of 25 years is required for both high and low-ratio insured mortgages, and mortgage renewals.
"Although it is still early, I have yet to see any sign that the new mortgage rules or closing the foreign buyers' capital gains loophole have made any impact on the market. If anything, the Toronto house market has heated up as house prices in Toronto and the GTA continue to rise, and the number of home sales hit record highs in October. Some of the Toronto gains can be attributed to the 15% tax now accessed on residential property bought by foreign nationals in Metro Vancouver. The B.C. government implemented this new tax in August in an attempt to cool down the housing market. It had caused Vancouver home prices and sales numbers, especially for high-end detached homes, to slide. As foreign buyers leave Vancouver to avoid paying the 15% tax in B.C., they are turning to Toronto to invest their money in real estate, including luxury single-family homes and condos," says Moloney.
"It remains to be seen whether any of the measures introduced by the Federal government will have any impact on the Toronto housing market over the long term. Stricter stress tests and mortgage requirements may postpone, and even prevent, some low-income first-time buyers from entering the market, but I don't see it causing much of a ripple. There are way too many positive factors at play driving Toronto real estate. Our biggest problem right now, is that there are more buyers than listings," adds Moloney.
About Right at Home Realty Brokerage Inc. Toronto House Team: The experienced realtors of Right at Home Realty Brokerage Inc. and the Toronto House Team specialize in buying and selling Toronto commercial and residential real estate, including luxury homes, single-family homes, semi-detached, townhomes, and condos. Whether you are shopping for your first home or want to sell your Toronto home, let the real estate professionals of the Toronto House Team put their extensive knowledge of the Toronto housing market to work for you. Their website www.TorontoHouseTeam.ca is the place to start your search for Toronto homes for sale and Toronto homes for rent by price point, location, and other preferences, through a real estate listing database that simplifies the search for the perfect Toronto residential property by matching buyers with houses for sale and rental properties. For more information about the Toronto realtors of Right at Home Realty Brokerage Inc. and the Toronto House Team, call 416. 800.0767, or email firstname.lastname@example.org.