Quote:
Originally Posted by whatnext
It will be different for a few reasons. The ON foreign buyer legislation included pre-sales, BC didn't because pre-sale condo sellers were big funders of the BC Libs. Also ON has rent control and Wynne included all newbuild condos that are rented out in that bucket. Second, it seems that TO had a true speculative hype bubble driven I suspect by the rumour that all Vancouver's Chinese buyers were going to head to TO, so "buy now or lose out forever"! However the numbers didn't materialize and data showed foreign buyers made up a much smaller part of the TO market.
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Or, how about not. Outside money is only 5-8% of the market, this isn;t rumour but a pointed piece of data. This drop is a baseball bat to the psychology of Torontonians who on both sides, Buy and Sell, think they can get a better deal and you see the ramifications with this with the sudden drop.
Even the slime monsters at the Toronto RE Board (TREB) are having to admit now that foreign money was a small slice of the market. TREB has had the data for years and has sat on it, keeping it secret to the masses, they are using now as a crutch to cry foul on the ON Gov in a bid to spin public perception against the Libs for the forthcoming election.
Overall though I do expect this all just to follow Vancouver. This is all a dead cat bounce back to insanity. Only killing off access to cheap debt will stop this housing bubble. Until interest rates rise, nothing will change aside from things getting more expensive.