New condo developments toronto . Home sales fell sharply in many regions, down 22% from a year earlier. Real estate agents in the greater Toronto area reported 4019 home sales in January through the MLS system, down 22% from 5155 in the same period last year, the Toronto Real Estate Bureau said.
The average selling price was 736783 yuan, down from 768351 yuan a year ago.
The decline was due to the increase in the number of new homes to 8585, compared with 7314 in January 2017.
Home sales in Toronto began to sell well last year, but the market cooled after the Ontario government took steps. This year, new stress tests and higher mortgage rates have also weighed on the market further.
After the big banks raised the threshold, these alternative financial institutions not only increased their business volume, but also received more customers who were rejected by the big banks, but were in a better financial position, that is, shifting the demand for home loans to the lower end of the market ladder. Mellister (Robert McLister), founder of RateSpy.com, said that these institutions, which are more willing to take risks and are less regulated, are now seeing a big increase in business. They may raise lending rates or be more picky about borrowers.
OSFI seems to have predicted the above situation. Rudin (Jeremy Rudin), director of OSFI, said in an interview in October that the imposition of stricter lending rules on federally regulated banks was expected to have some unwanted consequences, such as borrowers turning to riskier financial institutions that are not regulated by the new law. He said OSFI had no way to control what happened that it couldn’t control. “our powers and responsibilities are focused on ensuring the safety and stability of those federally regulated financial institutions. We don’t want to see things happen, but the authority we have can’t stop them from happening. “
