Breaking news! Ontario announces plans to curb housing prices in Toronto!
This morning the government brought forward Ontario’s Fair Housing plan, which is a comprehensive package of measures to help more people find affordable homes, increase supply, protect buyers and renters and bring stability to the real estate market. These measures are broken down on the governemnt website – Ontario’s Fair Housing Plan – and summarized in a press release.
The Important Points:
* Affordable Housing Initiatives
This is still somewhat vague but more details are forthcoming.
* 15% Foreign Buyer Tax
The Ontario Liberals have promised that this will not affect permanent residents or those coming to Ontario to live, work, and stay.
* Proof of Citizenship and Intent
The Ontario Liberals wish to further track the effect that foreign prospectors have on the demand for Ontario housing.
* Standardized Lease Documents
This will ensure landlords are compliant with what they can and cannot include in lease and fee agreements.
* Increased Rent Controls
Rent control will now apply to properties built after 1991 and will only allow the landlord to increase rent by the rate of inflation each year.
* Regulations on Realtor Multiple Representation
This is meant to ensure fairer representation on both the buying and selling sides of real estate transactions.
* Ban on Assignment Sales
Purchasers will no longer be able to flip their purchase agreements prior to closing for a profit.
Real estate stories like this continue to break quickly and dominate the media! Below, our parent brokerage, Bosley Real Estate, has put forth some smart market analysis on this and other relevant real estate news stories. Here are the leading stories:
MARKET UPDATE FOR THE WEEK ENDING APRIL 14th, 2017:
Last week the real estate industry took a slight pause while several major religions celebrated their holiest of days all in the same week. In real estate the coming of spring normally heralds the beginning of the annual game of trying to show houses while the city, in an apparently random manner, shuts down streets and neighbourhoods for prolonged construction projects – BEEEEEEEEEEEEEEEEEEEEEP – We interrupt this regularly scheduled Bosley Insight for breaking news from the Provincial Government. It seems that the powers that be at Queen’s Park will be making changes to ‘slow down’ the real estate market in the GTA. We wish we could tell you what this means but, like you, we will need a week or so to see how it all shakes out. Stay tuned next week when we can report back on how pending legislative changes will affect Toronto’s buyers and sellers.
Last week the Freehold market continued with steady sales just above 200 units. For the first time that we can recall there was not a single freehold property listed below the $700,000 price point in the central core and an astounding 85% of all listings sold over their advertised price last week. While homes continue to sell above their list price we have seen a backing off of the amount above list that buyers are paying. Homes under $1,500,000 are selling for about 125% above list, down from highs of 135-140% above list a month or so ago. With most of the city celebrating Easter and Passover it was not a surprise to see a steep decline in listings last week, down from 383 in the first week of April to less than half that number last week with 181 new listings.
The condo market also witnessed a decline in listings last week from 386 to 258. Sales remained steady at 224 compared to 234 the previous week and condos continue to be snapped up above their list price at a rate close to the freehold market. Over the past two weeks condos have sold over their list price 75% of the time down slightly from the peak three weeks ago of 80% of all condos selling above their advertised price. With all these new rules coming from our provincial government, including potential changes to rent control exemptions, the condo market will bear watching for the next few weeks.
Bosley Real Estate Ltd. is a full service boutique brokerage operating in Toronto, Niagara-on-the-Lake, Jordan and Port Hope, Ontario since 1928. We have four centrally located offices and over 250 sales representatives selling and leasing homes and condominiums in all the vibrant communities we work in. Our brand is well recognized internationally thanks to our unique affiliation with Leading Real Estate Companies of the World. Our sales teams meet weekly to discuss market conditions, trending topics, and anecdotes that more accurately reflect the true temperature of the real estate market.
HERE ARE THE TOP FIVE TRENDING STORIES OF THE WEEK:
Ontario unveils new tax, caps rent hikes in bid to cool housing
“The Ontario government is introducing 16 measures to cool the housing market in greater Toronto by making it more expensive for foreigners to purchase homes while also expanding rent controls to all units in the province.”
Wynne to slap 15 per cent tax on foreign real estate speculators
“Premier Kathleen Wynne is slapping a 15 per cent “non-resident speculation” tax on foreign investors to help cool down southern Ontario’s scorching real estate market, the Star has learned.”
Vancouver real estate could experience ‘market whiplash’ as home sales jump
“Just when prospective homebuyers thought they might find some relief in Metro Vancouver’s real estate market, a new report suggests that while the foreign home buyer tax may have cooled the housing market temporarily, people are now starting to rush back in.”
Toronto eyes vacancy tax to rein in real estate speculation
“If real estate is a lottery draw, Toronto-area homeowner Marni Blouin won the jackpot. Blouin and her husband purchased their modest detached home in Scarborough, Ont., 12 years ago for $238,000. In early April, they listed it for sale at $629,000, after hearing about the scorching-hot market that has boosted Toronto home prices by nearly 30 per cent annually..”
Home Capital shares plunge after OSC accuses executives of making misleading statements
“Home Capital Group Inc. and three of its current or former executives are being accused of making false and misleading statements to the public about the reasons the alternative mortgage lender had begun to extend fewer loans. The stock plunged Thursday morning in reaction to the news, falling more than 10 per cent..”
While we can never be completely certain where the market is headed, I – and my team – can make solid decisions about strategy based on history, existence of key influencers, and likely trends. At urbaneer, we understand the intrinsic value of being aware of what the experts say, and assessing their advice within the context of our own experience. Please know we are here to help!
~ Steven and the Urbaneer Team
Bosley Real Estate Ltd., Brokerage • (416) 322-8000
http://www.urbaneer.com • info@urbaneer.com
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