Shortly after the Ontario government introduced a foreign tax levy, Toronto and the GTA area did see an increase in listings in April and May this year. The sales also saw a cooling off, sparking speculation of a sharp decline in home prices in the days to come. So is the Toronto housing market going to see a big downturn soon?
Not likely, says Ted Tsiakiopoulos, Ontario Regional Economist, Canada Mortgage and Housing Corporation. The increase in listings and a fall in sales is a healthy sign of the real estate market acquiring some much-needed balance, he says. However, with prices not coming down yet, and Toronto’s housing fundamentals remaining strong, the dynamic is unlikely to shift drastically.
If you are contemplating buying a house, remember that these are some of the factors that could influence prices in the near future:
- Government Housing Policies: Whenever there is a public outcry about a housing situation, the government does tend to tinker with the market. After B.C., the Ontario government also took significant steps to reign in the Toronto housing market.
- Canadian Economy: Most people would not mind paying a slightly higher interest rate in the scenario of the economy doing very well. However, if interest rates go up, and the economy also weakens at the same time, leading to job losses and so on, it could impact home prices.
- Construction: With many new construction projects underway and customers snapping up condos, there is a reasonable balance between demand and supply. Still, the government’s Canada Mortgage and Housing Corporation (CMHC) and industry watchers will have to be alert to any growing imbalances that may impact the market negatively.
All Set to Buy a House? Here are the Steps to Follow:
Buying a new house is an exciting prospect, but it is important to remain mindful of some aspects before making your big investment.
- Plan a Budget: Consider how much money you are going to need for down payment and other additional expenses. Your budget will determine how much you can spend on a house.
- Look up Mortgage Options: Before you start looking for a house, you need to be pre-approved for mortgage. There are different types of mortgages. Even if you are not able to put down the usual down payment of 20 per cent, you can still go in for high ratio mortgage and explore other options.
- Choose a Realtor: Your realtor will be your guide and consultant throughout the home buying process. He/she will identify properties that match your criteria, negotiate to get the best possible price for you, and finally deliver the closing documents.
- Consult a Lawyer: A real estate lawyer conducts a title check for any outstanding taxes or liens on the property you are about to buy.
- House Hunting: You may end up seeing multiple houses in the course of your house hunting process. Keep a check list so you can compare and track the homes you visit.
- Make an Offer: Once your agent makes an offer on your behalf, the seller will decide whether to accept, reject or counter it.
- Home Inspection: Having an inspection done before buying a house ensures you don’t end up getting any rude shocks later on.
- Final Paperwork: Your deal becomes final when your mortgage is approved and you work out details about your insurance with your lawyer.
- Preparing to Move Out: This can be a challenging and tiring process. Make a list of things you need to do so you won’t be too stressed.
- Possession of House: Once payments are done and the lawyer completes all necessary paperwork, you receive the ownership deed and keys to your new home!
Make a Solid Investment—Own a Luxury Condo in Yorkville
Given that Toronto’s real estate market is expected to stay on firm footing, owning a house in the city makes for an astute investment. If you are interested in buying a luxury condo that fits your budget, matches your lifestyle, and offers you a fabulous location, then The Davies’ near Avenue Rd. and Cottingham could be the perfect choice. Just nine floors tall, the building is elegant and stylish. Minutes away from the posh Yorkville Downtown and TTC routes, living in The Davies opens up for you a plethora of choices by way of some of the finest restaurants, hotels, shopping centres, spas, art galleries, schools and specialty stores in the city. The condo also overlooks the Robertson Davies Park, allowing residents to enjoy the seasonal colours of the lush landscape.
For more details on this new condo project in Toronto, contact The Davies at 647-360-9588 and schedule an appointment or register online for more information. Check out our floor plans to see what best suits you and discuss your options with our team.