I recently wrote the Premier to stand up for my buyers & neighbours who are seeing crazy bidding wars with over 14 offers and homes going 100’s of thousands of dollars over asking. Ontario Premier Kathleen Wynne says she won't follow British Columbia's lead and tax foreign buyers of residential real estate in the Toronto area. This is big problem for Halton residents looking to get into the market or move up.
The Globe and Mail says, “What is happening in the Toronto housing market currently is almost a mirror image of how things played out in Vancouver, minus the citizen outrage. (Strangely.) You have: A real estate industry insisting there is no problem; a government holding that it doesn’t want to use policy tools that would hurt the equity in people’s homes; the same politicians contending they need more conclusive data before making any kind of move; foreign buyers moving in to park their money in real estate and many of those same purchasers leaving vacant houses behind.”
Oakville prices up over 30% year over year
This surge in demand and dollars points to foreign investors, including family money given to local family members to invest. This money is being brought in from countries like China, Jordan and Dubai. On top of what can be measured in terms of foreign investment, there is a lot more in the way foreign dollars being invested than being reported on paper. Oakville has become a prime location for foreign investors for many reasons including ample new developments, great schools, amazing communities etc. Toronto-area real estate agents say investors have grown to make up 25 per cent of their client base, according to a recent survey by Ben Myers, who researches trends in residential real estate. The Toronto Star recently reported that the average detached house in Toronto is about $1.3 million and about $1 million in surrounding communities like Oakville.
You can’t ignore supply & demand issues
Along with the increase in the investment dollars flowing through, the issue boils down to low supply and high demand. People from Toronto are migrating West in search of more affordable housing and can afford more options in Oakville & surrounding area. Cities like Hamilton, Grimsby & Niagara have seen major changes in their real estate markets as well.
It’s a different kind of market that it was even 2 years ago. Both buyers and sellers are faced with new challenges. Let me know if you would like to connect to discuss further, I would be happy to help!