Foreign buyers are fleeing in droves? Maybe, but for sure it’s too soon to tell whether it is a result of the foreign buyers tax. And Ontario is too big a swath….Real Estate is LOCAL, and though it appears that areas like Richmond Hill, Markham etc have been hit, the city of Toronto is always a different picture.
Foreign purchases were down in July and August (since the tax was imposed in April)…tis true. But also foreign buyers in the city are known for high end purchases….single family detached homes and THOSE HOUSES my friends are in SHORT SUPPLY! and especially when expensive homes are not usually listed in the summer months. Those homes are “parked” until after the September long week-end. And though we will see a surge of new listings in September…..we STILL have LIMITED SUPPLY.
Sales of Detached homes were down 34% in the city in August and prices flattened out (down 1.2%)
Sales of SEMI detached homes were down 13%….while prices ROSE by over 15%.
Average sale prices are down because sales in August consist of lower priced homes and condos. Only 132 sales took place over $2ML in August, while 632 sales over $2ML took place in March of this year!
All that said, there may be less “speculation” by foreign buyers, fewer empty properties but since the best guestimate in terms of % of sales being driven by foreign buyers was in the 4% range, whether there are fewer or not, the effect on the market is “negligible” when you consider 96% of the market action was local.
If you (or someone you know), are looking for a Realtor who cares MORE about focusing on you, your concerns, goals and the successful purchase or sale of YOUR unique home, than they care about their volume of transactions and awards, please let me know the best way for me to connect. I would love to offer my highly personal service. Contrary to that old expression, not only IS this business, but it IS personal! And, please, I encourage you to ask me any questions you may have about this post. I value your input and appreciate the time you took to read it.
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