A recent report issued by the Canada Mortgage and Housing Corporation has aroused a serious worry over the soaring Toronto real estate prices. It is statistically useless to blame it on the foreign buyers, but to the geographical location and steady increase in population density. As the prices are inflating in the region, it is going beyond the purchasing capacity of the middle class families in the area.
Mr. Benjamin Tal, the chief economist at the CIBC said, “We don’t have single evidence that supports the fact that foreign investors are acting as a leading force to drive up the real estate Toronto prices, which is making difficult for the first time buyers to afford the housing in the city”. Mr. Tal strongly resisted the idea that it is the fault of the foreign buyers who are totally responsible for price hike.
The Canadian Real Estate Association has also revealed that there is a limitation of the availability of the data for the Toronto region that tracks the overseas investments in the metro. However, they said that their present data show that there is not much enough foreign investment in the market which can have a huge impact on the Toronto detached house prices.
He also told that according to their data, the foreign investments in Toronto real estate are limited to 5 percent. Not even a single data point in their records shows more than 5 percent of total foreign sales activity in the city.
The other reports also point out that these figures are almost the near in any other city in the Canada.
Single detached house Toronto has become a symbol of luxury due to the rapid boost in the price hikes.
The CMHC also provided the reason for the prices touching the landmark of $1.1 million is the geographical hindrances as it restricts the amount of land utilization in the region.
Even the cities like surrey is not exempted from the rising prices single home prices. Similarly, people in Toronto are always under enormous pressure to buy the single Toronto detached house. However, multi-family housing prices are not much severely affected in comparison to them as told by Mr. Ted, an economist in Canada Mortgage and Housing Corporation.
People are trying to move faster in these single new detached homes in Toronto as their availability is getting constrained in the region. Furthermore, the price hikes are contributing to make these types of home to be counted as luxury products.
Mr. Tal said that the prices for the housings like multi-family and apartments have shown relatively small hike of about 7 percent in the Toronto and is expected to be almost the same in the coming years. He said that if you consider the reduced interest rates and increasing salaries, you would find that the apartments have become more affordable than they were in the past.
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