Toronto buyers forced into last-ditch measures amid overheated market

by Ephraim Vecina06 Jun 2016
The intensity of competition in one of Canada’s most overheated markets has reached near-crippling levels, with many buyers being driven to desperation in the crazed rush to get the best properties for themselves.
As reported by Meredith MacLeod of CTV News, a significant number of would-be buyers in Toronto have started resorting to last-ditch measures like letters, online ads, and even personal visits to potential sellers, all to beg for homes.
“The most recent was a young family so frantic to find a home, they printed up glossy postcard-type flyers featuring happy photos of themselves that they delivered in their target neighbourhood, hoping to find a sympathetic seller,” MacLeod wrote.
“The market is crazy right now,” real estate agent Mitch Parker said. “This is the extreme side of things, I would say. Having a letter with your offer explaining who you are or about your family or if you are going to revitalize the house, how it’s going to improve the neighbourhood, that’s not a new tactic. That’s been around for a very long time.”
The latest figures from the Toronto Real Estate Board (TREB) showed that the number of new listings in April plummeted by almost 10 per cent on a year-over-year basis, the second consecutive year that such a drop was observed.
The TREB added that the sales-to-new-listing ratio reached a record high of 75 per cent, even as the average home price grew by 13 per cent over the past year to break the $1.2-million mark.
Inventory level in Toronto went down to 4.7 months, the lowest in six years.


  • by Shawn Laghai 6/6/2016 1:29:58 PM

    This is one of the problems which are related to high prices increase in Canada especially in big cities like Toronto.
    It was time, in past that the people would sell fist and then buy since it was very hard to sell.
    Now when the house will sell in 5 days in multiple offers, the seller has to buy first before selling.
    And now, after Buyer get his/her mortgage at about 2.55%, and buys the new property, he/she will think why should I sell , I can keep it, rent it, and make 10% to 15% yearly increase in value of my property and pay only 2.5% interest to the bank. On top of it, lots of tax saving like capital gain other than making interest from leaving the cash in the bank or in the stock market. Not selling is much better investment choice.

    This problem will stay until the growth increase is 10% to 15% yearly.
    It is Easy to control it by my proviso recommendation, (( Sa soon as someone buy any properties, the yearly property tax to be start at closing time on the paid price and not continue with old assessment.)). This combined with stopping the foreign investors buying under friends or relatives name whom are Canadian resident (to avoid proper taxing. Please look at on May 25 2016). And also should put a cap on the foreign gift to Canadian resident for the purpose of purchasing property, like up to 20% purchase price and over above that counts as taxable income, since some of it may not be legitimate gift.
    As well as yearly property tax increase for the exiting property owners by the inflation percentage which is announced by Government of Canada. Which will saves lots of money for Government from assessment process.
    This few recommendations will make the buyers to stop paying too much for their new purchase. And will not crash the market but slowly will adjust the market.
    Shawn Laghai
    Right at Home Realty Inc.
    Cell # 416-998-8119

  • by Horrid 6/7/2016 3:03:50 PM

    Wow, Shawn your writing skills are atrocious. If I wrote like you I would never leave my name much less use my thoughts as an advertisement for my real estate services.


Is a Toronto foreign sales tax a good idea?