Beyond Bending Tell You How
The Greater Toronto Area (GTA) has been one of the hottest real estate markets in Canada for several years. Despite the COVID-19 pandemic and the resulting economic downturn, the GTA housing market has remained resilient, with home sales and prices continuing to rise.
If you’re a homeowner in the GTA or planning to buy or sell a property in the region, it’s essential to stay up-to-date with the latest market news and trends. In this blog post, we’ll cover the most recent developments in the GTA housing market, including sales and price data, new regulations, and expert opinions.
1. GTA Home Sales and Prices
The GTA housing market continued to outperform expectations in 2021, with home sales and prices reaching new heights. According to the Toronto Regional Real Estate Board (TRREB), there were 11,106 home sales in the GTA in July 2021, up by 29.5% compared to July 2020.
The average selling price for all home types in the GTA was $1,062,256 in July 2021, up by 12.6% compared to the same month last year. The MLS® Home Price Index Composite Benchmark, which measures the overall price trends in the GTA, was up by 18.1% year-over-year in July 2021.
Despite the high prices, the demand for GTA homes remains strong, fueled by low-interest rates, pent-up demand, and a growing population. However, the supply of homes for sale remains constrained, which has led to intense competition among buyers and bidding wars.
2. New Regulations Impacting the GTA Housing Market
The Ontario government has recently introduced several new regulations that could impact the GTA housing market. One of the most significant changes is the introduction of a new foreign buyers’ tax, which will apply to non-residents who buy properties in Ontario, including the GTA.
The tax, which is set to take effect on January 1, 2022, will be 15% of the purchase price for non-residents who are not Canadian citizens or permanent residents. The tax is aimed at cooling down the housing market and making it more affordable for local buyers.
Another change that could impact the GTA housing market is the proposed increase in the foreign buyers’ tax for homes valued at $2 million or more. The tax rate for these properties could increase from 15% to 18%.
3. Expert Opinions on the GTA Housing Market
Several experts have shared their opinions on the GTA housing market, including the future trends and challenges facing the industry. Here are some of their insights:
3.1. John Pasalis, President of Realosophy Realty
“The GTA housing market is still highly competitive, with many buyers looking for affordable options in desirable neighborhoods. However, the supply of homes for sale remains low, which is driving up prices and making it challenging for buyers to find a suitable property.”
3.2. Jason Mercer, Chief Market Analyst at TRREB
“We expect the demand for homes to remain strong in the coming months, as more people return to work and resume their regular activities. However, the supply of homes for sale will remain a challenge, especially in the low-rise market segment.”
3.3. Benjamin Tal, Deputy Chief Economist at CIBC
“The GTA housing market is in a unique situation, with a strong demand for homes and limited supply. However, we expect the market to gradually cool down in the coming years, as interest rates increase, and the pandemic’s impact fades.”
4. Conclusion
The GTA housing market remains one of the most dynamic and challenging real estate markets in Canada. Despite the economic uncertainty caused by the pandemic, the demand for homes in the region continues to grow, driven by low-interest rates, immigration, and a strong economy.
However, the market also faces several challenges, including the limited supply of homes for sale, high prices, and new regulations aimed at cooling down the market. As a homeowner or buyer in the GTA, it’s essential to stay informed about the latest developments and trends to make informed decisions.
People Also Asking
What is the average home price in the GTA?
The average selling price for all home types in the GTA was $1,062,256 in July 2021, up by 12.6% compared to the same month last year.
What is the new foreign buyers’ tax in Ontario?
The new foreign buyers’ tax in Ontario, which will take effect on January 1, 2022, will be 15% of the purchase price for non-residents who are not Canadian citizens or permanent residents.
What are the challenges facing the GTA housing market?
The GTA housing market faces several challenges, including the limited supply of homes for sale, high prices, and new regulations aimed at cooling down the market.
