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2017, affordability in Real Estate?

Tuesday, January 17, 2017 Written by Emmanuelle in News

2017, what about affordability in Real Estate?
First let’s have a brief look to numbers in 2016 in the GTA:

  • Home prices in Toronto grew by 12.1 per cent to $714,002.
  • growth shot up 12 per cent in Brampton to an average of $569,510 and
  • 9.6 per cent in Mississauga to an average of $609,266.
  • In Halton Region, low inventory made Oakville a top performer with a 15.4 per cent increase driving prices to an average of $894,696.

Are these prices still affordable? The main issue is how to help first time Buyers without impacting negatively the Market.
It is interesting to know what the Ontario Minister of Finance said in November 2016 on BNN:

  • We want to attract investors (foreign or not) and we value that.
  • Ontario is one of the top selection for foreign investors in North America.
  • There are investments in Ontario and not only in the GTA
  • Ontario generates a lot of revenue from housing
  • We don’t want to hamper economic growth

What measures have been taken so far?

  • The Land Transfer Tax Rebate in Ontario will be increasing from $2,000 to $4,000 within the province, with the intent of encouraging first-time home buyers to get into the market. This rebate will begin as of January 1, 2017.
  • Ontario passed legislation that will increase access to affordable housing for families across the province and modernize the social housing system, with Promoting Affordable Housing Act, 2016.

It is interesting to also note that Ontario will not follow B.C.’s tax on foreign homebuyers.  
That seems the right route to follow because imposing a new tax, even though it is supposed to focus only on foreign buyers, impacts in effect the whole real estate market, i.e. everyone, as the BC example demonstrated it. Nobody wants to have the value of its home lose 30% of its value.

 Let us see what will be the effects of these measures in 2017.

I would like to wish you a very happy 2017.