CityMash.com - While the consternation over the state of the Vancouver real estate market remains, things are worsening in Canada’s largest city, as the price of homes in the Toronto housing market has skyrocketed past Vancouver.
BMO senior economist Robert Kavcic noted that year-over-year price growth in Toronto is now rising faster than in Vancouver, as reported by Global.
Home prices in Toronto rose at a pace of 21 per cent year-over-year, while Vancouver was growing at a relatively more modest 17.8 per cent after seeing a large fall beginning four months ago.
Part of the increased growth can be explained by a number of recent moves by the government. In August 2016 the B.C. government imposed a 15 per cent property transfer tax on foreign buyers in an effort to stem runaway prices.
Shortly after in October 2016 the federal government introduced new mortgage rules in an effort to stabilize the housing market country-wide, with a focus on helping large cities, including Toronto and Vancouver.
The news of increased growth comes on the heels of a recent year-over-year property assessment that surprised Vancouver homeowners earlier this week.
Many properties were assessed an increased value of between 30 and 50 per cent.
However these property assessment numbers are as of July 1, 2016, and do not reflect the impact of the August 2016 15 per cent foreign buyer tax.