An unprecedented imbalance between the supply and the demand for Toronto-area homes is exerting a disproportionate impact on the national picture, according to the Canadian Real Estate Association (CREA).Its chief economist Gregory Klump said Wednesday that he doesn’t see that changing any time soon, although one bank economist suggested that the Toronto and area market may be “dangerously” overheated.Across the country, home sales declined 1.3 per cent between December and January, but the actual (non seasonally adjusted) sales activity rose 1.9 per cent compared to a year ago, said CREA.Its report showed dollar volume of Greater Toronto residential property sales rose 35.6 per cent year over year in January, compared to a 2.1 per cent national average rise, which was dragged down by a 51.1 per cent decline in Greater Vancouver.Read more:Soaring Toronto housing sparks interest in co-owningWhat to expect when you’re expecting to buy or sell a home in 2017Entertainment district, luxury units dominate Toronto condo marketNew listings in Toronto fell a seasonally adjusted 17 per cent in January from a month earlier, the biggest one-month decline since 2002. Sales as a share of new listings — a gauge of how demand compares with supply — rose to a record 94 per cent.But there are different takes on how concerning that is.Bank of Montreal chief economist Doug Porter described the Toronto region, including cities surrounding it, as being in a “housing bubble,” in a note to investors.“Toronto and any city that is remotely within commuting distance are overheating, and perhaps dangerously so,” Porter wrote.But CREA’s Klump said prices won’t go sideways until affordability starts to erode sales and buyers can no longer afford to purchase a home.“As long as we see the (Toronto area) shortage of supply there’s no end in sight,” he said.What is clear, however, is that the ...
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