The Toronto Real Estate Board (TREB) reports that the average home price in the Toronto area in March was up 33.2% from March 2016, illustrating just how much we need a solution to cool this runaway market.
Sales of homes in the region rose 17.7% according to TREB’s monthly Market Watch report, even as active listings were down 35.2% compared to the same time last year. You can imagine that anything that was listed lasted a mere days before it was scooped up. It’s a prime example of how an imbalance of supply and demand can lead to massive price increases in short amounts of time.
The average price for all home types across the GTA now sits at $916,567. Condos, the most affordable type of home are now averaging an eye-popping $518,879, making them expensive enough to be affected by the higher minimum down payment rules for high-priced homes.
The Ontario liberal party will reveal its 2017 budget later this month. In it, the government is expected to unveil proposed solutions that will address housing affordability and prevent the market from crashing.
As of now, there’s no consensus on what the right move should be. Some experts have said there should be a tax on house flippers. Some call for rent control, while others warn against it. A foreign buyers tax? Maybe, but there’s no strong evidence any of these solutions will work.
For now the one thing we can count on is that the average home in Toronto is definitely going to hit the $1 million this year, meaning even condos — the one place real estate agents have said people can find price refuge — are becoming unaffordable.
Who’s going to be left to buy when no one can afford anything?