Toronto real estate will get a lot more expensive in 2017, according to the Toronto Real Estate Board, which is forecasting the average price of a home to climb to over $800,000 this year.
The board is predicting another year of double digit growth in Toronto real estate prices, with the average selling price rising between 10 and 16 per cent.
More than 100,000 home sales are forecast for the third straight year.
The average sale price for a Toronto home is predicted to hit $825,000, according to TREB's market year in review and outlook report 2017, to be released Tuesday afternoon.
While the board predicts that some buyers will be hindered by new federal mortgage rules that limit their borrowing power, it says the biggest roadblock will be lack of inventory.
According to TREB data, active listings at the end of 2016 were at their lowest point since 2000.
"It's unlikely that the shortage of listings will improve to any great degree over the course of the year," Jason Mercer, TREB director of Market Analysis, said in a statement.
Foreign buyer tax would be 'misguided'
TREB's report acknowledges the rapid growth in Toronto real estate is putting home ownership out of reach for many residents.
But the board says a tax on foreign buyers would "misguided" as a potential solution.
In survey of its members, TREB found that just 4.9 per cent of agents acted on behalf of a foreign buyer last year.
A total of 40 per cent of foreign buyers purchased a home as their primary residence, the report says.
While there was much speculation that a new B.C. tax would see many foreign buyers shift to the GTA, TREB's survey found less than 2 per cent of its agents represented someone that was impacted by the B.C. tax.
TREB is also raising flags about "unintended consequences" of a foreign buyer tax in Ontario, including even more price growth, less rental supply, and a potential "negative impact" on immigration