The Toronto real estate market is without a doubt seeing an impressive rise in sales when compared to last year. We’ve witnessed a 10.6 percent increase in sales for the month of May versus May, 2015.

1. Toronto Real Estate Prices Continue to Soar
The Toronto real estate market is without a doubt seeing an impressive rise in sales
when compared to last year. We’ve witnessed a 10.6 percent increase in sales for the
month of May versus May, 2015. The Toronto real estate board has gone on record
saying that this increase in sales has created a shortage of certain listings. Low-rise
types of single family homes are becoming increasingly difficult to find.
Because of this, competition amongst buyers has become incredibly strong, and as a
result, Toronto real estate prices have climbed substantially. It is up 15 percent on the
price index when compared to last year for the month of May. With an influx of buyers
and seemingly shrinking amount of listings, Toronto real estate prices are in an upward
trend that has caught the attention of officials in Ottawa.
The OECD (Organization for Economic Co-operation and Development) has warned of
the increasing financial stability risks link to that accompany soaring prices and
increased household debt. These warnings are being headed by some, specifically
within Canada’s banking sector.

2. “We’re a little concerned about housing prices in the greater Vancouver area and
Toronto,” said Brian Porter, chief executive of the Bank of Nova Scotia.
“We just took our foot off the gas the last couple quarters in terms of mortgage growth…
in terms of Vancouver and Toronto.”
This wouldn’t be the first time the OCED has reported warnings about the listing
increase within the Toronto real estate market. Last December they made a similar claim
saying that measures need to be taken to cool down this increased price trend.
The bank of Canada has a similar stand-point on the Toronto real estate price boom.
The head of the bank has stated that this upward price trend cannot sustain itself within
the confines of a healthy and growing economy.
“Prospective homebuyers and their lenders should not extrapolate recent real estate
performance into the future when contemplating a transaction,” Stephen Poloz said
Thursday with the release of the bank’s semi-annual financial system review.
Finance Minister Bill Morneau has stated that Ottawa was going ahead with an in-depth
look into Canada’s real estate markets. The purpose is to determine whether or not
measures are to be put in place to help protect and safeguard Canadians in the event on
an interest rate rise and or severe economic developments and changes. Making sure
Canadians can still afford to live in their homes in the event such swift changed were to
take place is the priority of the in-depth study.
Watch this video as Bill Morneau shares his knowledge with us all. According to the
Globe and Mail, Finance Minister Bill Monrneau could be just what Parliament needs.
Whether or not Ottawa will act and what exact measures will be taken were not
mentioned by Morneau. He did however promise that a “deep-dive” into such areas
would help figure out if certain changes to Canada’s mortgage and amortization rules
were necessary. A move the Canadian real estate Association believes is in the right
direction.
“Having evidence-based policies and policy measures is the way to go,” said Gregory
Klump, the association’s chief economist.
“There are lots of anecdotes out there but if they were drops of water we’d all be
drowning in them at this point,” he said.
In February, Ottawa imposed some interesting changes to mortgage regulations. A down
payment of 10 present is now required on homes over $500,000. This is up from 5
present prior to February of this year. Even with said change, the impact on the pricing
boom was minor if anything.

3. “With the government’s efforts to get to the bottom of that we’ll have some better
information on that toward the end of the year we hope,” said Klump.
Investing in Real Estate
As proven above, the real estate market is and will continue to soar. The average MLS
listing is worth hundreds of thousands of dollars alone. Investing in real estate is a great
idea, so long as you have experts by your side. Your real estate agent will give you
advice that will result in a huge return on your initial investment. It has been proven that
buying a property is by far the best investment out there today. The return is very quick
and each year, you see your profit double – even triple! Simple renovations can increase
your property’s value by thousands. Please check out the new Toronto real estate
listings today and figure out how you can benefit from purchasing a property in the
Greater Toronto and surrounding areas.