69% of Torontonians said housing issues affected their vote
June 7th marked the beginning of a new leadership in Ontario. The Toronto real estate market has undergone some drastic changes in 2018. There’s been a lot of speculation surrounding a PC government and what that will mean for real estate in Toronto. While it’s all still too soon to tell, here’s what experts are saying to expect.
Two major impacts that came about this year were the “Mortgage Stress Test” for uninsured buyers and the implementation of a 15% tax of non-resident foreign buyers. Both of these measures were aimed at the housing bubble that was getting dangerously close to popping.
So what’s happened so far?
Despite a dip in residential home prices and sales, Toronto brought in $30-million more than expected from its land-transfer tax in the first three months of the year, thanks to an unexpected boost from the commercial real estate market. These tax dollars are meant to increase affordable housing and allow first-time home buyers a chance to buy into Toronto’s attractive real estate market.
As for the stress test, things are looking up (and down.) The new mortgage rules have caused a slump in the housing market – but there have been some unexpected upsides. Overall, household debt levels are going down and the market seems to be stabilizing. What’s more? Condo sales have actually increased, especially among first-time buyers.
What’s to come?
The attempt to cool the Toronto real estate market seems to be working, which has given buyers a chance to catch up while sellers remain competitive. In Toronto, despite a lower-than-average sales year so far, buyers will soon see the benefits of these measures.
In fact, predictions for the housing market are calling for a slow but steady increase for the second half of 2018. Especially in the GTA, there will be a healthy supply and demand of homes. Buyers and sellers alike can look forward to a return to a stable real estate market.
As for any new changes to the market that come with the new government, check back with STOMP Realty.