Toronto Real Estate Market: An Overview
The Toronto real estate market, much like Canadian winters, can feel like a harsh environment for the average Joe to navigate. With stricter federal mortgage laws introduced in January 2018; Many homeowners have been literally squeezed out of the market, with existing homeowners finding their property values either holding neutral or falling with an average loss of 4 percent.
With property no longer feeling like a guaranteed investment, we take a look at what has been happening in the Toronto real estate market to lead to this downward trend and how the wheel of fortune is likely to turn in the coming years. 12 months.
mixed fortunes
In recent years property prices have risen exponentially in GTA and while this has been a delight for many sellers, it has been a double edged sword as fewer people have been able to afford to climb the property ladder. the property. Those who bought when the price was high found their morale fading along with the inevitable fall in market prices, as did those who assumed their home was a stable investment for the future that would only continue to increase in value. Of course, there are those now hoping that a crisis will put an end to what many residents have felt to be Toronto’s housing affordability crisis, but it is more likely that the market will continue to stabilize with a few bumps in the road during 2019.
New federal mortgage laws
In line with the country’s intentions to limit the amount of debt assumed by the population and financial institutions; New federal mortgage laws introduced on January 1, 2018 meant that Canadians obtaining, renewing, or refinancing a mortgage could be required to take a “stress test.” This is to show that they could face interest rates substantially higher than the contract rate. This was relevant even for borrowers who had a down payment of 20 percent or more and was another adjustment in what has felt like a long list of regulatory changes to really push through, never mind the possibility of moving up the payment ladder. the property.
Out of market price
These changes affected approximately 100,000 of Canada’s population, half of whom were still able to make a purchase other than what they had originally planned and the other half who gave up entirely. So while many people rushed to buy or sell and upgrade to a property they couldn’t afford when the new regulations came into effect, many people found themselves out of a market where they couldn’t afford to get into the market. paper. . This is true even if they felt they had the financial means to do so or if they had met the criteria set forth in previous years.
Buying your way back
The inevitable rise in Canadian property prices was also seen reaching dizzying heights in the Toronto real estate market, but what goes up must come down, and these stricter mortgage laws caused the market to begin to even out during 2018. This trend it looks like it will continue. during the spring of 2019, and it is this news, coupled with the February announcement of thousands of newly created jobs, that provides hope for first-time buyers or those looking to move up the property ladder. With 665 new housing developments also in Toronto; it could literally become a buyer’s market.
Snowbound
Although Ottawa and Montreal are starting to see signs of renewed growth and rising temperatures, the Toronto real estate market is still said to be on the cool side at present, and the literal coolness of the weather hasn’t helped either! A particularly harsh winter has made prospective buyers think twice about being able to tour the property and since it takes time for snow to thaw, it will take time for the gradually warming spring temperatures to melt the ‘cold’ in. Toronto. Real-estate market. More home listings are expected to appear on the market during the spring and summer months, perhaps bringing a modest increase in prices. But, with many other variables affecting real estate trends, including elections and the economy; it could be that the Toronto market is not strongly in favor of the buyer or the seller, but rather their own individual circumstances. So some people will win, some will lose, and some will break even.
luxury properties
Demand for luxury homes and condos is expected to increase and since demand usually comes with increased prices; those selling these styles of properties seem to be definitely in the winning camp. The median price for a luxury home is expected to reach $3,691,700 within the next twelve months and $2,390,405 for a condo.
Interest rates
The Bank of Canada is not expected to raise interest rates more than once this year, but along the same lines, this means they are unlikely to go down either. Currently, the rate is 4.375 percent for a 30-year fixed-rate mortgage, but mortgage rates remain the critical factor in determining the affordability of a home purchase; Keeping a close eye on the interest rate is literally in the best interest of the buyer!
Greater Toronto is a land of hope
Although home ownership rates fell in Canada for the first time in 45 years in 2018; it is still a country that has one of the highest home ownership rates in the world. More than 40 percent of households under the age of 35 own their own property, and although Toronto is considered one of the least affordable markets in Canada, there are still opportunities and hopes in the real estate market for a good investment.
Need for a Good Downtown Toronto Real Estate Lawyer
Finding a good downtown Toronto real estate lawyer is just as important as finding a good property to buy in Toronto. Some attorneys provide great service, but charge through the nose for the transaction. Some lawyers advertise that their legal fees are the lowest, but their service is still the lowest on the market. Transparency in the legal fee structure is one of the main issues with the fee structure for real estate lawyers in downtown Toronto. The one law firm that stands out from the crowd is the Shaikh Law Firm because they have posted their Toronto real estate lawyer rates on their website. Their reviews suggest that they are transparent, honest and provide good service. When this article was published in 2019, Shaikh Law was ranked in the top three real estate attorneys in Toronto, along with Jonathan G. Griffiths and Jay Teichman. The quality of legal service from Jonathan and Jay is excellent, but their legal fees are significantly higher than those of the Shaikh Law Firm.
How to Choose a Good Downtown Toronto Real Estate Lawyer
Before hiring your real estate attorney, you should ask the following questions;
1) How many transactions does the Real Estate Lawyer complete in a Month?
2) How long has the Lawyer been practicing Real Estate?
3) What is the fee structure? Can the attorney give a written quote with no hidden fees?
You should always do your research online, ask a friend for a recommendation. It’s important to note that your real estate agent’s recommendations are always skewed because they often take kickbacks for recommending a real estate attorney. So do your own research before hiring someone. It is always recommended to call a Toronto real estate lawyer for a free consultation to review your transaction before hiring someone.