<img height="1" width="1" src="https://www.facebook.com/tr?id=390674378043480&amp;ev=PageView &amp;noscript=1"/> Toronto home sales dip could signal market cool-down (Citynews Article - Quotes by Tom Storey) - The Storey Team : Toronto Real Estate

The Storey Team : Toronto Real Estate

Toronto home sales dip could signal market cool-down (Citynews Article - Quotes by Tom Storey)

03 May 2017
Tom Storey

Between 2008 and April 2017, the average share of foreign buyers of properties in the Greater Golden Horseshoe region was 2.3 per cent. TREB said its analysis was based on property assessments and land registry data in the province.

During the same time period, the share of homes that were bought and sold within one year of the original transaction — an indication of speculative activity — was also low, TREB said.

Less than five per cent of transactions fit that definition last year, but that number rose to seven per cent in the first four months of this year, a trend that may indicate that rising prices have lured more speculators into the market.

“When you’re seeing price increases month-over-month of thousands of dollars — sometimes hundreds of thousands — some people would look at that as an investment opportunity to buy and sell quickly,” said Tom Storey, a sales representative with Royal LePage Signature Realty.

Ontario Finance Minister Charles Sousa downplayed TREB’s statistics, suggesting he wanted to wait for more data to determine how much foreign buying is in the market.

“(TREB is) taking data from addresses on the transactions, but TD economists and others have suggested it may be higher,” Sousa said. “We do know that once Vancouver instituted a non-resident speculation tax it immediately spiked up activity in the Toronto area.”

The government hasn’t yet introduced legislation that would impose the tax on non-resident speculators.

Nonetheless, Sousa said he believes the measure is already having an effect.

“Obviously just the degree of discussion that we’ve engaged around this has put an alert out to speculators: you’re going to have to pay your fair share, be it domestic or be it non-resident Canadian.”

BY ALEXANDRA POSADZKI, THE CANADIAN PRESS

POSTED MAY 3, 2017 7:12 AM EDT

With files from Allison Jones

Source: http://www.citynews.ca/2017/05/03/toronto-home-sales-dip-signal-market-cool/