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Toronto has historic low of 3,200 homes for sale

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Are you looking for a home in Canada’s largest city? Good luck with that.

Toronto, a city of 6.5 million people, has only 3,200 homes for sale, an all-time high, according to Bloomberg. That’s less than half of the 7,900 on the market a year ago, the store said, citing the Toronto Regional Estate Board.

Blame the low interest rates. Home sales jumped nearly a third last year to over 121,000, sparking fears of a bubble and breaking a record set in 2016. America’s northern neighbor is more because mortgages are one of its biggest sources of consumer debt. The exposure of the Canadian financial system to mortgages is double that of its American counterpart.

The average home price in Toronto jumped 18 percent last year to about $ 862,000, also an all-time high.

While authorities have tried to cool the housing market by taxing foreign buyers, analysts say the root cause of a nation’s housing shortage is a mismatch between population growth and the pace of housing construction.

“We continue to suffer from a real shortage of inventory in the market,” Jason Mercer, chief market analyst for the Toronto Real Estate Board, told BNN Bloomberg Television. “We really need to get a sense of what policy makers are going to do to get this supply problem under control.”

Procurement is most directly controlled by municipal and provincial governments, which have sway over the rules of land use and planning. Demand is largely directly affected by measures available to the federal government, such as assistance for first-time buyers.

Last year, economists predicted that home sales in Canada would peak in 2021 and start declining in 2022 and beyond.

[Bloomberg] – Connie Kim

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