Home Realty: Housing Should Be An Election Issue
By NextHome Staff
March 31, 2018
March 31, 2018
Proactive buyers can improve housing market conditions by voting for changeFor buyers in search of somewhere to call home, the GTA real estate market can seem like a daunting place. In January, sales of new single-family homes in the GTA — including detached, link, semi-detached and townhouses — hit the lowest level for that month in almost 20 years, representing just 365 units out of the 1,251 total new homes sold in the first month of 2018, according to Altus Group.Demand for single-family homes remains strong, but the number of units available on the market has been severely limited, largely as a result of provincial government policies that have constricted the supply of land that new homes can be built on. This has caused prices to soar. In January, the benchmark price for available new single-family homes rose 20 per cent compared to the same month in 2017, to $1.2 million.
The situation has forced buyers to look to the condo market, with apartments in lowrise, midrise and highrise buildings, stacked townhouses and loft units accounting for 71 per cent of new home sales, with 886 units sold. But buyers turning to the condo market for pricing relief aren’t faring much better. The benchmark price for condos in the first month of the year was up 41 per cent over January 2017 — to $714,430 — according to Altus Group.The GTA is expected to grow to nearly 10 million people by 2041, and our provincial government needs to do more to increase housing supply, whether it’s simplifying approval processes, updating zoning by-laws or servicing developable land to bring more homes to the market.It’s not just provincial politicians who are responsible for the issues currently facing the GTA housing market, however. Municipal governments have added to housing affordability challenges, particularly in Toronto, where home purchasers are hit with a double land transfer tax. On top of this, development charges paid by builders to municipalities continue to rise, and these increased costs are passed down to those purchasing homes, further worsening affordability.And the federal government’s recent introduction of more stringent mortgage stress test requirement will make it more difficult for first-time buyers, seniors and average GTA residents to qualify for the amount of mortgage that they could have previously afforded.All of this is contributing to a housing market that is far from fair for all, a place where soon only those with gobs of money will be able to participate.But members of the public can play an important role in shaping the future of the housing market by being proactive. That is, by voting for candidates who support efforts to increase housing supply, and by not supporting politicians who pander to NIMBYs in their ridings.There’s no better time than now for the public to be proactive. A provincial election is coming up in June, followed by municipal elections in October, and the next federal election is slated for 2019. All of these represent excellent opportunities for residents and aspiring homebuyers to make a big difference in determining the future of our housing market. So get out there and vote — use your ballot to tell politicians that things must change.
Debbie Cosic, CEO and founder of In2ition Realty, has worked in all facets of the real estate industry for over 25 years. She has sold and overseen the sale of over $15 billion worth of real estate and, with Debbie at the helm, In2ition has become one of the fastest-growing and most innovative new home and condo sales companies. In2ition has received numerous awards from the Building Industry and Land Development Association and the National Association of Home Builders.
The situation has forced buyers to look to the condo market, with apartments in lowrise, midrise and highrise buildings, stacked townhouses and loft units accounting for 71 per cent of new home sales, with 886 units sold. But buyers turning to the condo market for pricing relief aren’t faring much better. The benchmark price for condos in the first month of the year was up 41 per cent over January 2017 — to $714,430 — according to Altus Group.The GTA is expected to grow to nearly 10 million people by 2041, and our provincial government needs to do more to increase housing supply, whether it’s simplifying approval processes, updating zoning by-laws or servicing developable land to bring more homes to the market.It’s not just provincial politicians who are responsible for the issues currently facing the GTA housing market, however. Municipal governments have added to housing affordability challenges, particularly in Toronto, where home purchasers are hit with a double land transfer tax. On top of this, development charges paid by builders to municipalities continue to rise, and these increased costs are passed down to those purchasing homes, further worsening affordability.And the federal government’s recent introduction of more stringent mortgage stress test requirement will make it more difficult for first-time buyers, seniors and average GTA residents to qualify for the amount of mortgage that they could have previously afforded.All of this is contributing to a housing market that is far from fair for all, a place where soon only those with gobs of money will be able to participate.But members of the public can play an important role in shaping the future of the housing market by being proactive. That is, by voting for candidates who support efforts to increase housing supply, and by not supporting politicians who pander to NIMBYs in their ridings.There’s no better time than now for the public to be proactive. A provincial election is coming up in June, followed by municipal elections in October, and the next federal election is slated for 2019. All of these represent excellent opportunities for residents and aspiring homebuyers to make a big difference in determining the future of our housing market. So get out there and vote — use your ballot to tell politicians that things must change.Debbie Cosic, CEO and founder of In2ition Realty, has worked in all facets of the real estate industry for over 25 years. She has sold and overseen the sale of over $15 billion worth of real estate and, with Debbie at the helm, In2ition has become one of the fastest-growing and most innovative new home and condo sales companies. In2ition has received numerous awards from the Building Industry and Land Development Association and the National Association of Home Builders.