READ IT IN THE NEWS
It looks like I’m officially a stock photo for REMAX HALLMARK and the Real S. Taitt Industry in Toronto. However, being attached to new Government regulations is very interesting. It’s a slippery slope when the Government wants to implement changes that will affect your bottom line when selling.
Just like the pandemic, it depends what side of the fence you sit on. Many individuals businesses were busier and had the opportunity to work from home, and others grew deeper in debt. It is hoped that the new regulations will offer respite for buyers and more transparency. I feel, the new regulations will eliminate the outlier bid in most circumstances and will keep all bids closer together, however values will remain strong. If the regulation is presented as an option for all parties in a transaction, this will be perceived as problematic as; a seller would prefer a CLOSED bid and a BUYER would prefer an OPEN bid.
This will have minimal effect on a high demand property, or a short supply properties such as detached dwellings, however, properties with a healthy supply in any area will have a substantial decrease in a multiple offer situation. Overall, this will create a need for sellers to price their properties at a list price closer to their expectations. Will the market change? Probably not, however, Government policies do have a direct effect on Real Estate market values. Check out this great article from the Financial Post which may explain it way better than I have.
Furthermore, we are still feeling the effect of the extra land transfer tax in Toronto, which effectively has doubled the cost of moving when one factors in Realtor fees and Taxes. This has directly affected the supply of housing in Toronto, the price of housing and has increased the Renovation industry tenfold.
In closing, the new regulations in the pipeline will have minimal effect on the value of your home, furthermore, your Government means well but you can’t please everybody and it is another election year.