T.O. housing down­turn may be short-lived

The Hamilton Spectator - - CANADA & WORLD - DAVID HODGES

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.

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