In a move that could hamper demand for real estate in Ontario, the province has passed a new law that will limit the number of people who can own a home.
The new measure is expected to curb demand in a province where a shortage of rental homes is driving prices up, pushing many to sell their properties and move to smaller cities.
The government has also raised the minimum home ownership age to 26.
The government says the move will help keep home ownership affordable for seniors.
“We are committed to helping all Ontarians stay in their homes and to keep them safe,” said Ontario Premier Kathleen Wynne in a statement on Friday.
“While the current provincial government continues to focus on the needs of its wealthiest residents, we know that for many people, this new law will make a real difference in their daily lives.”
Realtors say it’s not enough.
They fear the new law might force them to close their doors, reducing the supply of homes in their market.
“It’s not fair,” said Andrew Gavaris, president of the Ontario Association of Realtors.
Realty agent Joe Rennie is among the many in Ontario who fear the changes could mean they can no longer serve as brokers.””
I’m very concerned about this.”
Realty agent Joe Rennie is among the many in Ontario who fear the changes could mean they can no longer serve as brokers.
“If you want to make a living, you have to earn money,” Rennies said.
“You can’t be a broker.
It’ll affect my life for the rest of my life.””
This is a major change in my life.
It’ll affect my life for the rest of my life.”
Rennies and other realtors have lobbied hard for the changes, which the government says will make it easier for people to buy and sell property.
Realty experts say there is little evidence the change will have any effect on the housing market.
In fact, they say the new legislation could make it even more difficult for homebuyers to find a home in Ontario.
“The reality is, people who are on the waitlist and people who aren’t on the waitinglist, they’re already going to be out of luck,” said realtor Paul Pritchard.
“We’re going in the opposite direction.
This is going to cause a lot of frustration and a lot more uncertainty.”
Ontario’s real estate market is currently booming, with sales up nearly 25 per cent in January from the same month last year.
In April, sales reached a record level.
The real estate industry is one of the most important sectors of the province’s economy, and the province is home to more than 300,000 registered real estate brokers, who make up the second-largest sector of the economy.
Realtor Gavares is concerned about how this new measure could affect the sector.
“I think it’s going to have an impact on the business and it’s affecting everybody,” said Gavias.
“It’s going in reverse the trend of real estate prices.”
Pritchard says the new laws are the perfect time to introduce a tax on overseas buyers, but he says that won’t solve the problem.
“You’re going back to the 1930s, when we were a very different place,” he said.
“Where we had lots of houses.
Where people had money.
Where we had a strong financial institution.”