T.O. housing downturn may be short-lived
TORONTO — The recent downturn in Toronto’s real estate market, brought on after Ontario introduced measures this spring including a foreign buyers’ tax, is expected to be brief, the federal housing agency said Wednesday.
Property prices in the city,— which fell from an average of $919,589 in April to $793,915 last month, according to data from the Toronto Real Estate Board — should pick up again due to supply constraints and a stronger economy, Canada Mortgage and Housing Corp. said.
“The response we’re seeing in the Toronto market seems almost emotional and a knee-jerk reaction to some of the changes, which suggests that these impacts will be short-lived,” Dana Senagama, CMHC’s principal market analyst for Toronto, said during a conference call to discuss the agency’s latest housing market assessment.
The province’s measures, retroactive to April 21, include a 15 per cent tax on foreign buyers in the Greater Golden Horseshoe region.
“If job creation continues in Toronto … and the economy continues to fuel the housing demand, we can expect some of the pressures on house prices in Toronto to resume,” said Bob Dugan of CMHC.