Toronto real estate has been enjoying a bit of a sell-off in recent times, especially in the Greater Toronto Area (GTA). The third strongest September ever, 9,046 properties traded hands in the month of September, up nearly a full 5% in comparison to August. This is good news considering that only May and September typically experience a drop-off in new listings. However, this is not the only good news with regards to Toronto properties. Below are some factors that we believe will help keep Toronto’s housing market on an even keel come October. If you want to browse properties to buy, check https://guglu.ca.
* With job losses expected by many industry watchers, higher education costs expected to rise, and fears of a downturn in global economy, now may be a good time for first time homebuyers. While home prices are already at an all-time high, they appear to be set to keep rising, and if current trends continue, much higher. Recent reports have indicated that the Toronto Real Estate market has picked up in the past few months, giving those looking to buy a toe a chance at being able to get into their first home. In addition to the job losses, downward pressure on home prices caused by record low interest rates should help those looking to purchase a place of their own settle in.
* With housing market crashes sometimes seeming to rear their ugly heads before the actual crash, and even sometimes right after, the potential buyers’ market may just give them the opportunity they need to find that perfect place to call home. With higher prices, and lower interest rates, there is no better time to buy than right now. With the possibility of another nationwide market crash potentially on the horizon though, now might not be the best time to make an investment.
* There has been some speculation that the downward pressure on prices might be temporary. And while the population growth does help to keep things moving upward, it could just as easily drop back down, causing a significant correction in prices. One Toronto realtor who suggests this possibility, suggests that it may only be a matter of time until the upward pressure on home prices reverses itself. Toronto has had a few very hot summers, but not a lot of rain.
* The 2021 forecast by Toronto’s chief financial officer, Jennifer Phillips, isn’t too optimistic. She anticipates that the future might see a slower than average growth in Toronto’s real estate market. Even if that growth does materialize though, it won’t be quite as quick as the current one. The Toronto real estate market has seen some very sharp increases and decreases over the last few years, and this current uptrend isn’t likely to continue.
* Even if interest rates are cut back, there is no guarantee that the prices will stay low for very long. The Bank of Canada may bring interest rates lower again before they rise again, which would cause an even greater correction in the Toronto real estate market. If interest rates are cut back, Phillips recommends that people get into their homes sooner rather than later, even if they are not sure that they can afford to buy at these low prices. The upside is that interest rates are predicted to rise again later in the future, providing additional incentives for buyers. “That will definitely help things out,” porter says.
* While Toronto’s forecast doesn’t foresee an immediate recovery from the recession, it does suggest that the current trends may continue for some time. The current slump is considered to be a global problem, affecting countries like the UK and the US. Although Canada has its own economic problems, the report points out that “the effects of the crisis are being felt by other countries including Canada, too.” For example, oil prices have recently skyrocketed in order to compensate for the glut of oil in the US market. The Toronto real estate market may not be affected as negatively, but Canada as a whole could suffer from a reduction in commodity prices.
* Although Canada is not believed to be facing a recession, experts do believe that the current status of the national house market could change rapidly in the future. Right now, the national housing market remains solid, but analysts project that prices will begin to decline in coming years. Even though the toronto housing market outlook is gloomy, Phillips and Tristani predict that the prices will rebound in the next few years. “It’s really a buy-and-hold business,” tristani says.