Puzzling’ Toronto real estate market could frustrate push for price fix, CMHC says

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RICHARD LAUTENS 

OTTAWA—Justin Trudeau’s Liberal government has been under pressure to rein in runaway home prices, but a study by the national housing agency suggests the prime minister will struggle to exert control over the real estate market in Canada’s largest city.

Conventional economic factors including population, incomes and borrowing costs accounted for less than half of the 40-percent surge in Toronto home prices between 2010 and 2016, according to a Canada Mortgage & Housing Corp. (CMHC) study obtained by Bloomberg through a freedom of information request.

Supply constraints, and to a lesser extent speculation and investment, accounted for most of the rest of the gains, although a lack of high-quality data about the availability of land made firm conclusions hard to draw.

Continue to read on.Toronto Star