Home prices in Toronto have started to get stable this year. The correction was bound to happen due to some unprecedented increase in the home prices was witnessed in the past four years. The introduction of 15% tax on foreign buyers really set up the tone followed by a series of interest-rate increase by Bank of Canada. A lot of potential buyers were struggling to get the home of their choice can now get some breather as the prices of home in the greater Toronto area has stabilized. There was a time when any home that went into the market for sale, invited multiple bids. So much was the enthusiasm that a lot of buyers had to literally pay as much as $100,000 on a property worth half 1 million.
Now the times have changed and the real estate market has transitioned itself from being a seller’s market to the buyer’s market. This means that there is a surge in the home inventory and the buyers are showing less interest. The home prices have not dropped substantially but the process of home sale has decreased considerably. This is because a lot of potential buyers have applied brakes on their plan to buy a home. This on the other hand as adversely affected the sellers who were planning to sell their homes to either flip or at the booked their new homes. Due to the low rate of sales, many potential sellers are in a panic mode as they want to move to their new home but also want a good price on their existing home. A lot of buyers who had earlier signed the offers are backing out of the deals creating problems for both the sellers and themselves. They do not now want to pay a premium pricing on the home that was being sold as on premium some six months back.
The future of real estate market in Toronto
Well if you see the trends, the future of real estate in Toronto looks very bright. The brief halt largely due to the interest-rate increase and a 15% surcharge is not going to carry a long way as people will eventually start buying their homes. A similar trend was witnessed in Vancouver when the prices suddenly dropped off the 15% surcharge on the foreign buyers. The prices have stabilized and back on the north in the Vancouver area. The same kind of trend is expected to happen in the greater Toronto area which includes major cities such as Mississauga, Brampton, Vaughan, Oakville, Milton, Caledon and more. It is expected that the Toronto real estate market will be getting grounds following the next year Summers. So all those potential buyers looking to buy a home, it’s never too late to buy a home. Contact your financial institution to get yourself pre-approved for the mortgage and start hunting for your dream home. This is the good time to buy a home as the rates are low and the interest-rate is still within the reach. At local Toronto, we can help you find the home of your choice within your budget. If you are looking for a detached home or a semi-detached home or a townhouse or even condo, contact us with your needs and we would be happy to help you find a good home.