Ontario’s finance minister isn’t indicating any further intervention in Toronto’s housing market is imminent, despite a strong warning from CIBC that homes in the region will continue to be unaffordable in the long run.
“Market forces will always prevail, but we’ll see how it proceeds,” Charles Sousa said in an interview with BNN Tuesday. “But we needed to take those measures to control it,” referring to the province’s 16-point housing plan introduced in April.
While Toronto home prices have eased on the heels of Ontario’s policy intervention, CIBC Deputy Chief Economist Benjamin Tal argued in a recent report there will be tighter market conditions “when the fog clears.”
Tal predicted that supply issues in the region will likely worsen, noting “demand is routinely understated.”
“This is a symptom of a strong economy where many people want to come here to work, where people want to invest and create their businesses and create jobs ,” Sousa said when asked about the report. “With that, comes a high demand for homes.”
“We took those 16 measures to temper that demand and soften the accelerated year-over-year increases up to 30 per cent,” he added.
“And so we were all concerned … about a correction that would have been dramatic. So we took those necessary steps to calm the market, temper the mood, increase supply and have it more sustainable over time.”