New mortgage rules fail to cool GTA housing market as prices spike in the 'burbs

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The fashionable mortgage rule changes have failed to slow the blistering traverse of home sales, according to numbers released Friday and they may eat actually pushed prices higher in rts of the GTA that are still pondered affordable, realtors say.

The Toronto Real Estate Board (TREB) said 8,547 domestics were sold in the Greater Toronto Area through the Multiple Inventory Service last month. That’s up 16.5 per cent from hindmost November. Prices also marched higher with the average trade price up by 22.7 per cent to $776,684.

That’s despite new federal rules that took effect in October requiring buyers to have a larger down yment on clans priced over $500,000.

«I think for the most rt (the rule change) has been accepted,» said Whitby-based realtor ul St. Aubin. «A lot of people who were deeply, very close to purchasing — it’s now pushed them back a year or two or they sooner a be wearing to look a little further out.»

He said that’s led to a more dramatic press in prices outside of the city of Toronto, from Milton in the west to Oshawa in the east.

In Whitby, the undistinguished home price is now well above the $500,000 threshold at $624,409. In as a matter of actual fact, Durham Region had the biggest year-over-year price increase in the GTA with a 25.4 per cent im le reflecting its relative affordability and access to downtown.

«The (new) rules did not take out a lot of investors who are the ones report in in and bidding aggressively. They are looking for long-term growth whereas the common resident just wants to get into the market,» said St. Aubin, who combined that investors have noticed infrastructure improvements east of Toronto, such as the flourishing of Highway 407 and planned improvements to the Lakeshore East GO train hallway.

«When you are looking for an area to invest in there are three things you look for, and the Durham Province has all of them: infrastructure improvements, a higher than national average takings and population growth,» he said.

 ul St. Aubin, realtor

Realtor ul St. Aubin says investors drew by recent infrastructure investments are responsible for the recent price spike in Durham Tract. ( ul St. Aubin)

Once again across the region a lack of listings was the channel driver behind the price jump, according to Toronto Real Housing Board President Larry Cerqua.

«Would-be home buyers continued to be fight off by the lack of listings, as annual sales growth once again eclipsed growth in new listings. Seller’s market conditions translated into good fettle rates of price growth,» Cerqua said.

And changes in federal mortgage dominates did nothing to address the lack of supply, according to TREB’s director of deal in analysis Jason Mercer.

«Recent policy initiatives seeking to apply oneself to strong home price growth have focused on demand. Growing forward, more emphasis needs to be placed on solutions to alleviate the insufficiency of inventory for all home types, especially in the low-rise market segments,» foretold Mercer.

hi-construction

The Greater Toronto Homebuilders’ Association says new home construction is basketed by red tape and can’t keep up with demand. (CBC)

While TREB’s numbers did not bring new home sales and prices, Michelle Noble of the Greater Toronto Homebuilders’ Coalition said inventory continues to drop as new developments are held up by red tape,

«We’ve been make coin money the challenges around supply side for years,» said Noble. «A lot of it do down to the amount of land available that’s serviced and development enthusiastic.»

 MICHELLE NOBLE

Michelle Noble, the vice president of communications, marketing and media relations for the Incom rable Toronto Homebuilders’ Association, says tight inventory problems are caused by a scarcity of land ready for development. (Greater Toronto Homebuilders’ Association)

Upright said while there were areas slated for development they be without such infrastructure as hydro, water and sewer systems.

«Plus, the amount of every so often it takes to get projects approved and ready to go … is going up,» said Staunch, who said buyers are ying more and getting less..

«We are seeing strengthens in prices and smaller units.»

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