All you need to know regarding the housing market in Toronto, Canada and abroad.
This week in Toronto: Runaway housing market heading for paralysis, a new culprit for the housing bubble and realtors warned about handling pre-emptive offers and .
Elsewhere: Chasing the Canadian dream, what Trump's deportation orders mean for housing and what's wrong with Sweden?
Capital Economics is stirring the housing pot again, this time suggesting Toronto’s growing housing bubble can be blamed on move-up buyers who are leveraging equity in their existing homes.
Even adversarial economists agree Toronto housing market is at risk (Buzz Buzz Home)
In his note, Porter elaborates that a “supply shortage” isn’t the cause of overheating. Specifically, he wants the building community to know housing starts for Toronto and Vancouver hit an annualized rate of 70,000 units recently, or “an all-time high.”
Toronto’s runaway housing market heading for paralysis, economists warn (The Globe and Mail)
One reason existing homeowners aren’t listing their houses for sale is that the cost of moving is so high. It takes a huge investment to make the jump to a larger property or a more coveted location. There are commissions and legal fees to pay. Land-transfer taxes are levied by the province and the City of Toronto.
It’s not enough that Toronto area home-buyers are facing competition so fierce that list prices have become virtually meaningless and bully or pre-emptive offers are increasingly the norm.
Millennials want to be home owners. Eight in 10 consistently say that home ownership is important to them, real estate is a good investment, and owning a home gives them a sense of pride. But millennials also say that owning a home is more difficult now than it was for their parents. They have a point.