Toronto Mayor doesn’t consider rocket high home prices a reason for panic
According to Toronto Mayor John Tory, the city’s real estate market isn’t facing a bubble, as sharp prices growth is just a sign of a healthy condition.
“Economists keep releasing reports, and I read them all without ignoring. However, I also talk to people from the federal and provincial governments, from the private sector, and no one has ever told me about a panic situation at the market,” – he said on Thursday.
“We can see a strong market activity today, as prices are growing significantly, and, of course, it’s an issue. Nevertheless, it’s an issue that people are facing challenges with buying homes, but not an issue which can cause a real panic,” – Tory noted.
CREA on difficulties homebuyers will face this year
The first 2017 report by the Canadian Real Estate Association (CREA) focuses on the possible challenges homebuyers may have to withstand this year.
“In 2017, homebuyers in Canada will face certain difficulties, including stricter mortgage rules affecting the qualification process and other changes increasing the cost of mortgage financing,” - CREA President Cliff Iverson noted. “We need time to evaluate the strength of these challenges towards buyers in various real estate markets.”
Last month, home sales were down by 1.3% from December. Half of the local markets reported sales declines with the largest drops in the GTA, Greater Vancouver and Montreal.
As the result of sharply growing home prices in Toronto, more and more young buyers and professionals are switching into condo sector instead of detached houses.
According to the latest report by ReMax Hallmark Realty, the competition among condo buyers in the downtown (especially in the Queen and King Street West sectors) caused hot bidding wars often with seventeen competitors.