According to a recent TD Bank report, the two hottest real estate markets, Toronto and Vancouver, appear to be headed in different directions.
Vancouver's real estate market is predicted to soften, reinforced by the enactment of a 15% property tax levied on foreign home-buyers that came into effect August 2nd.
"Home prices are projected to decline by about 10% in the region by mid-2017, before stabilizing later in the year" TD said. Despite this decrease, the bank notes that average prices will still be well above figures one to two years ago.
Toronto on the other hand, "has more room to accelerate over the near term. Barring the levying of a similar tax, foreign investors could switch focus to the more affordable Toronto market."
Do you agree with TD that the property tax on foreign buyers is responsible for a softening market? And will foreign investors increasingly be looking to Toronto instead of Vancouver?