New Ontario Regulations Barely Affect Sales Performance
Photo: Flickr / Liz
Despite the hopes of the provincial government, the Wynne administration’s attempts to promote a cooling in home and rent prices across Toronto and the Greater Golden Horseshoe Area have actually had very little effect on the targeted property markets. According to a new reported penned by the Canadian Real Estate Association, sales volume numbers In Toronto proper actually went up in August, quickly recovering from a massive downturn of more than twenty-five percent over the last couple months after the new measures were adopted.
Ever since the adoption of the new price control measures, the market has been somewhat unpredictable regarding property sales performance over the last few months when looking at the market at a regional basis. Some areas such as the city of Toronto itself have been experiencing a serious downturn in regards to sales volume yet home prices have remained relatively stable Other regions have barely shifted, yet other regions such as Hamilton have seen sales volume and home prices actually increasing. As a result, a CREA spokesperson expressed his caution when it came to determining whether August would mark the start of a revival of property sales in Toronto and some affected locales across the Greater Toronto Area.
When looking at the statistics in pure numbers,
July and August have been good months for the real estate industry, even in
spite of significantly restrictive regulations passed by the Ontario
legislature. From July to August, there was near one and a half percent
increase in sales volume in Toronto, while in the whole of Ontario, there was a
massive boost of more than fourteen percent of the same statistic over the same
timeframe. At the same time, however, there has been a shrinking of the
available supply of properties on the market, with a drop of nearly four
percent for listings available in August. What this means, therefore, is that
homeowners are waiting to sell their homes in order to take advantage of the
best possible moment available. Currently, since prices have fallen ever since
the adoption of not only the new Ontario regulations but also the new mortgage
rules adopted at the federal level, it is clear that now is not the time to
sell. With independent firms such as Moody’s and Sotheby’s suggesting different
conclusions regarding near future price trends, conflicting information makes
it harder for both sellers and buyers to see when to make their moves.
Published Date: Oct 20 2017