M city 5 condos for sale. The Toronto property market has cooled down! Nasma Ali, a real estate agent in Toronto, Canada, points out that demand for housing in the Greater Toronto area has slowed significantly in the past few weeks. She believes that this may be the result of excessive house price growth in the suburbs and surrounding towns over the past two years.Please Visit: M city 5 condos for sale to Get Your VVIP Registration Today!
Ali is the CEO of a real estate team. “I have some listings and will have more than 100 appointments in January,” she said. All of a sudden, the housing in hand now has only 5-6 appointments in 4 days. This is a transitional period and does not apply to the overall market. However, we find that the housing market is slowly changing. ”
Compared with most of last year, the rate of sale of listed homes in Toronto, where housing supply is limited, has slowed to a lower rate than in February last year.
The slowdown in sales in and around major cities such as Toronto and Vancouver appears to be intensifying due to multiple factors.
After Russia’s invasion of Ukraine, deteriorating housing affordability, rising lending rates and accelerating inflation are changing market sentiment.
Record ultra-low mortgage rates have pushed up Canadian house prices by 52% in the past two years. But demand for housing is cooling as fixed mortgage rates soar and floating rates rise after the Bank of Canada raised interest rates for the first time in three years.
The money market thinks the central bank will raise the policy rate to 2.25% from the current 0.5% by the end of this year.
“this is the biggest increase in five-year fixed interest rates in my memory,” said David Larock, a mortgage broker at Integrated Mortgage Planners. “I’ve been in this business for 20 years.”
“I’m starting to see loan terms attached to home sale agreements, which have been unheard of in the past few years,” he said.
Marnie Bennett, the boss of Bennett Property Shop Realty in Ottawa, says she has seen a shift in the market, especially at the lower end of the market, as concerns about affordability deter first-time buyers and investors have cashed out near the peak.
“just because interest rates are still very low, buyers still have some affordability,” said Sal Guatieri, senior economist at BMO Capital Markets.
“but this affordability will disappear soon,” he added, adding that the central bank’s rate hike “will extinguish the housing market flame to some extent.”
While this is unlikely to cause significant damage to family finances, it will put pressure on some buyers, he said.
Pedro Antunes, chief economist at Conference Board of Canada, expects house prices to fall by 10 per cent due to the end of income support from the epidemic, rising interest rates and more normal consumption patterns.
“Canadians will start vacationing in the South and may not be ready to spend that much money on new mortgages,” Antunes said. ”
Despite the weak economy, house prices in Toronto and Vancouver are up 27% and 20% respectively from a year ago, with prices rising by an average of 20.6% nationwide.
However, Lisa Bednarski, a real estate agent for the Toronto BSpoke Realty team, said: “this is still a seller’s market.” But we will no longer see houses being sold at inexplicable prices above market value. ”
To sum up, the housing market in Toronto is getting colder, prices can’t go up, and they are likely to fall by 10% this year.
