Ads Google

Toronto might experience heightened activity soon due to new mortgage rules

by Ephraim Vecina on 03 Nov 2017

Average annual prices of Toronto residential properties remain stable due to sustained gains in the condo segment, and the further tightening of mortgage rules could add a temporary boost this autumn, observers argued.

The decision by the Office of the Superintendent of Financial Institutions to impose more stringent stress tests could lead to a scramble as the rules, which take effect on January, might slash a family’s purchasing power by as much as 21%.

“The recent changes announced by OSFI might actually result in a short-term rush as those that are impacted by these changes rush to buy,” Realosophy.com president John Pasalis told BNN. “What happens after [the Jan. 1 deadline] is anyone’s guess right now, but I expect the spring market in 2018 to be cooler that it has been in recent years.”

This is despite the overall market being “more balanced” than it was a year ago, Pasalis said. The executive noted the growing evidence of “stark divergences” in the market between condos and freeholds.

“Average prices are up 2% over last year, but this is due to the condo market which saw prices rise 17%,” Pasalis explained. “Freehold prices were flat over last year.”

Read more: Toronto condo prices could slow

The divergences are even more obvious when one examines the GTA’s average prices from neighbourhood to neighbourhood.

“The market for houses and condos is relatively competitive in downtown Toronto,” Pasalis said. “Regionally, York Region continues to be hardest hit.”


Related stories:
GTA’s first-time buyers mostly prefer condos – census
Activity in Toronto, Vancouver continues to recover



Post a Comment



Most Trending News

Training new skilled trades workers must be a priority
News

While there has been a deceleration in new home sales, we must keep the pedal to the metal and continue to train skilled trades workers for the future.

Read More
To build 1.5M homes, we must think outside the box
News

Many jurisdictions in the U.S. have been thinking outside the box to boost the housing supply. Here in Ontario, we’d be wise to follow suit.

Read More
Upcoming free event: Canadian Real Estate Investment Summit
News

This free summit will feature top experts in Canadian real estate who will share their knowledge on a broad range of topics. It will be presented on Sat. Jun. 18th from 12pm-3pm.

Read More