REDISCOVER REAL ESTATE

Is it time to buy? Refinance?

According to the latest news of the Canada Mortgage and Housing Corporation and if you have been thinking about it...I would say it is!

CMHC may have inadvertently given Mortgage Brokers and Real Estate Agents a helping hand, with its latest move to slow mortgage growth by encouraging fence-sitting buyers into the market again.

Mortgage Brokers, once sitting on a mountain of preapprovals, have benefited from the CMHC announcement.  “I’ve had an increase in inquiries from people who were sitting on the fence –people hear the news and decide it’s time to move,” Cindy Pusateri of INVIS Canada’s Mortgage Experts. “People are deciding to refinance as well.”

Mortgage brokers aren’t alone, with Real Estate Agents also seeing a spike in sales since the Crown Corporation announced it would limit each lender in its mortgage-backed securities program to $350 million in guarantees for August. The move is expected to increase the originations costs for large lenders, if only this year. They are also expected to pass on those costs to consumers in the form of higher rates.

The move is keeping Real Estate Agents across Canada hopping to close deals on homes that have in many cases ‘sat on the market’ over the summer months. Numerous homebuyers are looking to cash in on preapproval offers made prior to the announcement and at rock-bottom rates, which are expected to rise eventually.

But some have yet to notice any significant sales surge, suggesting it may be due to clients being out of the loop.

I’ve talked to some clients and what CMHC said may put pressure on bond yields, but some customers aren’t tuned into what’s going on with it.

Looking to buy, sell or refinance? Know your options. I can help! Direct line: 416-219-6662

 

Delayed Spring Market Pushes Into July

In a typical year in the Toronto downtown market, activity slows naturally after the Canada Day  Weekend and prices drop slightly during the summer months.

Last year was no exception. After the new & tighter mortgage financing rules were announced in June, July prices fell and remained lower until a slower-than-usual fall market kicked in after the Labour Day Weekend.

Things are not quite the same this year. Prices so far in July are actually lower than in June… but they are about 8% higher than last year. In the first half of July, the number of sales was also slightly higher than in 2012, while the number of new listings was actually a bit lower. Ultimately, there are a lot of discouraged buyers out there who were unable to purchase in the spring market, often because they lost out on bidding wars. Many of these buyers are still looking at the same time as sellers have left for summer vacation.

Even the much-criticized condo market is posting a modest (approx. 2%) increase in prices over last year despite persistent high inventory.

The continued strong demand from buyers, coupled with the general shortage of new listings, particularly for single family homes, points to a very healthy fall market, perhaps even as strong as the spring market.

Another sign of the strength of the Toronto real estate market is the growth in condominium rentals. Average rents for one and two bedroom condominiums also increased by more than the rate of inflation. It is rare that the rental market and the resale market are simultaneously strong: typically a strong resale market means that renters are buying and vice versa. With both the resale and rental markets
in full speed, it seems unlikely that we will see a slowdown any time soon. Almost certainly not this year.

Looking to sell / buy a condo or house? Need some professional advice? Want to know your real estate options?

Direct line: 416-219-6662