These 5 charts show how Toronto's housing market has changed over the last year Page 1 of 4

Its been a busy year for the Toronto housing market, and it can be hard to keep track of how 2017 is
stacking up in comparison to years past.

Toronto home prices plummeted over the summer on the heels of record growth in the first quarter of
the year which culminated in the Ontario government introducing its Fair Housing Plan in April. The
Bank of Canada also hiked its overnight rate for the first time in several years with some market
watchers predicting more action will be taken in December. Now, the market seems to be balancing
out. But how does all of this compare to 2016?

To put 2017s ups and downs into perspective, BuzzBuzzNews has rounded up 5 charts to put things
in perspective.

1. How the overnight rate affects house prices

Whats going on here: BMO Senior Economist Robert Kavcic compared the Bank of Canada
overnight rate to the MLS Home Price Index Composite for the GTA over the last 10 years.

The takeaway: Given that we see home prices jump as interest rates plunge in 2009 and 2016,
Kavcic writes that its no coincidence that, after a multi-year period of well-behaved price growth, the
Toronto market began to explode after the Bank of Canada cut rates twice in the first half of 2015.

2. Torontos home prices dropping

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These 5 charts show how Toronto's housing market has changed over the last year Page 2 of 4

Whats going on here: Toronto-based real estate website Zoocasa compared November 2016 home
sales in Toronto and the GTA to November 2017 sales.

The takeaway: Higher interest rates and Ontarios Fair Housing Plan have led to a significant year-
over-year dip in sales across all home types.

3. Will Torontos housing correction mirror Vancouvers?

Whats going on here: RBC Senior Economist Robert Hogue tracked the MLS Home Price Index for
Toronto and Vancouver over the last four years.

The takeaway: After the BC government introduced a foreign buyer tax in August 2016, prices
plummeted. But now we can see them start to rise to pre-tax levels. Will Torontos home prices
also down after the introduction of Ontarios Fair Housing Plan follow a similar pattern?

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4.Land value in the GTA spikes

Whats going on here: CIBC Senior Economist Benjamin Tal looked at the climbing cost of land value
in the GTA, which has risen dramatically in the last two years.

The takeaway: Tal says that a lack of serviceable land in the GTA means prices will climb in coming
years. The main issue facing the market is a significant and worsening lack of land supply, he
writes. Land prices in the GTA have risen strongly over the past year with the share of land in total
sale price rising to a record high of more than 55 per cent.

5. Housing affordability seems to be getting worse

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These 5 charts show how Toronto's housing market has changed over the last year Page 4 of 4

Whats going on here: National Bank economist Matthieu Arseneau looked at the rising rate of
mortgage payments as a percentage of monthly income.

The takeaway: The Bank of Canadas decision to hike the overnight rate by 50 basis points since July
has meant higher mortgage rates and worsening affordability for Toronto home owners. At a national
level, more than 70 per cent of the deterioration in affordability was due to higher interest rates,
writes Arseneau. In Toronto, it was 90 per cent.

http://news.buzzbuzzhome.com/2017/11/5-charts-show-torontos-housing-market-change... 2017-11-18