Toronto Outstrips Vancouver As The Country's Hottest Market—TD

According to TD Bank economist Diana Petramala, Toronto has become Canada's most dynamic and fastest growing real estate market.

She referred to the latest statistics from the Toronto Real Estate Board as there was an 18 per cent year-over-year growth in home prices during the month of August 2016.

The economist also stated that Toronto's appreciation in prices of homes since the beginning of 2015 has now exceeded Vancouver's. The population of those individuals between the ages of 30 and 40 have been increasing over the past two years and this trend has driven up housing demand as many of them are first time buyers.

Employment growth is another factor impacting housing demand in Toronto. The city's attractiveness to foreign buyers is another factor that cannot be ignored.

According to Diana Petramala, home prices in Toronto is likely to continue to keep increasing at a double-digit rate throughout the remainder of the year and into the beginning of next year due to strong domestic demand, strong foreign demand and tight supply conditions.

She also stated that the extra land-transfer tax on non-residents in Vancouver will also likely push more foreign buyers to look at purchasing properties in another city in Canada such as Toronto.

Diana Petramala warned that there are significant risks that the housing market could face. She said that the Toronto market has become even more reactive to higher interest rates than in the past.

Any minor changes in mortgage rates in 2017 will help cool housing activity. She added that the Toronto market will eventually cool however the question is whether the reason will be policy action or higher interest rates.

Reference:

Mortgage Broker News

http://www.mortgagebrokernews.ca/…/toronto-outstrips-vancou…