With summer coming, here are three new trends to expect in the real estate market Toronto, according to the latest market watch reports.
Here are a few new trends to expect in the real estate market Toronto, according to the latest market reports:
1. Largest growth occurring in the areas surrounding GTA
According to the Bank of Canada’s newest Financial System Review, the Greater Toronto Area (GTA) is experiencing a 32% increase in house prices. This is relative to April 2016 price levels. Most notably, the price of condos in the GTA has significantly increased. In the first few months of the year the price of condos was almost on par with prices of single-family homes.
As prices have risen, homeowners are looking for more affordable housing just outside of the GTA. Consequently, home prices in the Greater Golden Horseshoe area have risen. As a result of this increase, the areas surrounding the GTA have experienced growth at a faster rate than areas within the GTA.
2. Price growth strong despite increase in listings
The May 2017 resale housing market figures revealed that despite active listings going up to 42.9% in May, price growth remains strong. Elli Davis and her team suggest in their latest Market Watch Report that the average selling price in May hit $863,910. This is a 14.9% increase compared to last year.
3. Summer home releases and openings
Lastly, as homeowners begin to take advantage of the strong price growth, we’re bound to see many new home releases and openings this summer.
With listings growing, it’s sure to be an exciting summer for the real estate market Toronto.
A major shift in mortgage rules aim at ensuring Canadians aren’t taking on mortgages that they can’t afford.
The Liberal Government has announced a major shift in mortgage rules aimed at ensuring Canadians aren’t taking on mortgages that they can’t afford. The changes are intended to address topics related to foreign buyers who are buying and flipping homes in Canada and to reduce the risk of Canada’s financial system from becoming unstable.
The new rules expands a mortgage stress test to all insured mortgages.
As of Oct. 17, a stress test used for approving high-ratio mortgages will be applied to all new insured mortgages – including those where the buyer has more than 20 per cent for a down payment.
These measures appear to be targeted in the Vancouver and Toronto real estate markets after concerns of sharp rises in the price of homes in these cities put the possibility of defaults at a greater risk should mortgage rates continue to rise.
Since the new rules appear to be aimed at lowering the government’s exposure to residential mortgages for properties worth over $1 million, Toronto Realtors like Elli Davis say the changes affect a relatively small amount of mortgages in Toronto. Consumers buying homes over $1 million have lots of equity to begin with. It can also be viewed as the government taking steps to balance and promote healthy market activity. In fact, statistics show that Toronto real estate soared 11% in October 2016 compared to last year despite the introduction of this new ruling. Toronto realtors may actually experience a more level playing field.