*Foreign* Buyers Beware

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*Foreign* Buyers Beware

According to the Globe & Mail, runaway prices in Toronto have gotten everyone talking. The Ontario Government is reconsidering a foreign buyer tax to cool the market, after they previously said they would not implement one.

Finance Minister, Charles Sousa, is now taking such a measure into consideration in order to help control the market. He has grown concerned due to reoccurring and normalized bidding wars that are going on with a lot of sales/purchases in Toronto.

Many real estate groups are opposing the introduction of this tax. They have pointed out that the implementation of this type of tax will not help with the current housing supply problem that Toronto is facing. This tax would target a small, niche market, they argue, and does not address the overall lack of available housing.

The average detached house in the GTA sold for $1.21-million in February, up from $1.07-million the year before. In order for Toronto housing prices to fall, the limited supply issue has to be addressed, as well as demand.

Toronto’s inventory is historically low, with resale housing expected to remain tight. There is simply not enough housing to keep up with demand that Toronto residents are presenting.

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