Photo: James Bombales
Sometimes buying early pays off. Just like investors who held onto their bitcoins, plenty of personal fortunes were made this spring through the sale of long-held Toronto detached houses. But that was when prices were hitting record levels — these days, things have levelled off, and a cooler market may lie ahead.
“Not shockingly, prices continue to correct in the region after making like bitcoin to start the year,” writes BMO chief economist Douglas Porter in a recent note.
Porter notes that the average price for a detached home in the GTA is now down almost 6 per cent year-over-year, well below the one million dollar threshold.
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“This partly reflects a return to reality after the madness early this year, but also the specific impact of Ontario’s April policy measures to cool housing,” writes Porter.
Porter’s takeaway is that the “controlled correction” that Toronto market is experiencing will continue into the new year. But not everyone is so sure — some industry players think that the policy’s effects are already starting to fade.
Following two consecutive price spikes in October and November, Toronto Real Estate Board director of market analysis Jason Mercer says we could be seeing the beginning of the end of the Fair Housing Plan’s effect on the market.
“Similar to the track followed in the Greater Vancouver Area, it appears that the psychological impact of the Fair Housing Plan, including the tax on foreign buyers, is starting to unwind,” he writes in a recent statement.
Nevertheless, the latest numbers from the Canadian Real Estate Association (CREA) indicate a balanced market in the GTA, at least for now. National home sales rose 0.9 per cent in October, a modest increase which remains well below the record levels set in March.
“The GTA has become a far more balanced market than it was a year ago,” CREA chief economist Gregory Klump told BuzzBuzzNews.