Often, what we see on the streets can be a precursor to the stats that will play out in the coming month or months. September was not as strong as we used to see three-plus years ago, but there is something afoot.
The recent announcements by the Federal government regarding the insurance mortgage up to $1.5m (actually 1 cent below that number) and the first-time buyer’s ability to access a 30-year amortization are beginning to give more hope to the buyer pool. Note that most of these buyers must close at least ten business days after the December 15th implementation date.
On the hunt for more Toronto real estate insights? Explore these recent posts from our blog.
- Is it a Bad Idea to Sell My Toronto Home in Today’s Market?
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The reason for the later closing is that the banks will need to re-run the deal at the new financing regulations, and we don’t have enough clarity right now to fully comprehend the ins and outs; those extra days will be necessary. In addition to the two above announcements, we expect the Bank of Canada to lower the overnight lending rate by .25% or as much as .50% (which many believe will happen at this stage.) The buyer’s confidence is increasing. We see more showings, offers, and higher prices in October.
Remember that this is freehold housing in the 416 of Toronto; condos are having a more challenging time (but these, too, will begin to improve in the Spring with the new rules and lower rates). The GTA will also begin to feel better as Toronto leads real estate recovery for the rest of the GTA and Ontario’s markets.
Have questions about buying or selling in today’s market? I have answers! Reach me by email at ryan@ryanroberts.ca or call 416-925-9191.
