The hottest question in the real estate market in Ontario right now is whether or not Ottawa should step in to help control the fiery hot real estate market in some of Canada’s biggest cities like Toronto.
Finance Minister Charles Sousa has made it clear that the province is incredibly restricted on the influence it can have on a housing market that has become defined by ever-increasing costs of homes, quick home flipping, and extensive foreign purchasing. In Toronto, the average detached home price has been increasing by 35 per cent annually, reaching its peak of $1.5 million this past March.
As a result, the provincial government, real estate advocates, and the public are making their own respective calls to Ottawa Finance Minister Bill Morneau to consider alternative options and potential solutions to cool the heated real estate market in Ontario, such as:
- Increase the capital gains inclusion rate for non-principal residences
- Coordinate with different levels of government to create a more affordable housing market
- Implement a BC-style taxation on foreign homebuyers
An assistant to Finance Minister Bill Morneau declared that the federal government is indeed determined to cooperate with the provinces and municipalities to find solutions to affordable housing. His efforts have already included the implementation of a required 10% downpayment on homes over $500,000 and closely monitoring the principal residence tax exemption. Alas, despite the myriad of options rising to the surface, there is a relatively collective concern amongst all players and policy makers about the “unintended consequences of any decision we make”. Much of this uncertainty stems from buyer speculation.
The forthcoming release of the Ontario budget in the next few weeks, alongside the promise of the budget to include housing affordability measures, will hopefully bring greater clarity to the future of the real estate market in Ontario.
If you are interested in learning more about the real estate market in Ontario, we encourage you to contact one of our expert Realtors® today to learn more about the best options for you and your family in the Ottawa real estate market. Visit our website at http://www.performancerealty.ca/.