Home sales in Vancouver fell 26 percent over the same period, the Real Estate Board of Greater Vancouver said earlier this month.
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The latest batch of home sales figures from Canada’s largest city could reveal whether or not Vancouver’s newly implemented tax on foreign buyers is sending investors flocking to Toronto.
Sales are up by 23 per cent and prices are also up by 17 per cent, making it the hottest August on record for Greater Toronto real estate.
Toronto Real Estate Board President, Larry Cerqua stated, “The conditions underlying strong demand for ownership housing remained in place, including a relatively strong regional economy, growth in average earnings and low borrowing costs”, adding that “Unfortunately, we did not see any relief on the listings front, with the number of new listings down compared to past year”.
Meanwhile as Torontonians continue to get priced out of their market, look for a similar foreign investor tax in the weeks or months to come, as offshore investors continue to flood the Toronto market as they did Vancouver before the tax. “That’s a conscious choice we’ve made”. “We’re going to have a lot more to do, and we’ll watch the numbers in the coming months, but I think it’s a good start”.
Could a tax on house flippers fly in Toronto?
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Clark said it’s too early to assess the effect of the new tax, but the government has no plans to change the foreign buyer tax rate or the new “luxury tax” on homes valued at more than $2 million.
