Toronto's Land Transfer Tax (LTT) has had punishing effects on the Toronto housing market, reducing transactions and lowering average prices, according to a study released in December by the C.D. Howe Institute.
In Sand in the Gears: Evaluating the Effects of Toronto's Land Transfer Tax, authors Benjamin Dachis, Gilles Duranton and Matthew A. Turner find that the LTT caused a 16 per cent decline in the number of single-family homes sold after January 2008 and a 1.5 per cent reduction in house values.
They calculate the LTT will cause a reduction in household mobility – at least 3,500 families annually in the municipality of Toronto will stay in houses from which they would have otherwise moved - and an average reduction in selling price of about $6,400 per house.
For the study, click http://www.cdhowe.org/pdf/commentary_277.pdf
You can find great local Toronto, Ontario real estate information on Localism.com Frank Bott is a proud member of the ActiveRain Real Estate Network, a free online community to help real estate professionals grow their business.
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