Gauging the health of Toronto’s housing market
Days from bay street to main street from boardrooms to dining rooms every conversation pretty much comes back to affordable housing supply and demand prices especially the rising mortgage rates as well now here to distill the latest data is treb the toronto regional real estate board president kevin krieger kevin good morning thanks for.
Being here thank you let’s start with a recap of august market stats starting with sales so we saw a lesser decline in overall volume uh in the month of august which over time certainly could provide additional support to price we saw listings uh equating to a smaller portion of.
Overall sales so sales outstrip listings and certainly we saw an overall increase in activity what about trying to cut the red tape it’s something that treb certainly has been calling for for some time and with the recent provincial election it obviously was a big topic of.
Conversation so we certainly hope that the development process um and also looking at opportunities for additional density in much more cohesive ways becomes a key policy objective certainly the municipal government kevin let’s talk taxes existing land transfer tax and a potential new speculation tax.
So the city of toronto already has the highest level of land transfer tax in the country at nearly four percent um for a two million dollar home buyers currently are paying almost 80 000 between the provincial and local land transfer tax so certainly any further increase to the land transfer tax municipally.
Could lead to a further decline in overall supply with people opting to renovate and stay in their existing homes based on the obvious transaction costs kevin we have things like infrastructure improvements you’ve got transit expansion happening now and coming down the line what effect will that have in.
The market well certainly the substantial investments that have been made in transit infrastructure are really an ideal opportunity to really maximize their potential through intensification on already well-serviced transit locations and that’s certainly.
Something that we hope for again with municipal government’s plans going forward last thing kevin you know the forecast for the bank of canada’s continued quantitative tightening policy uh and the signals that are coming out of queen’s park and parliament hill how’s this all going to trickle down to toronto because real estate’s a long.
Game right well it certainly is it’s not solely an investment obviously it’s a place to live as well but additionally in terms of an investment type it generally has a much longer time horizon certainly we’ve seen a slowdown in the market largely driven by substantial.
Increases to interest rates but we are starting to see buyers adjust some are adjusting to a different price point and you know buying a different type of housing product but we certainly based on the numbers in august have seen a lesser decline from.
The months before and looking at the future certainly as people adjust we’ll see them come back into the market okay kevin krieger the president of treb toronto regional real estate board thanks for letting us pick your brain have a good day thank you