Prices everywhere are increasing, seemingly day over day. The economy in our country is really feeling the impact of internal and external factors that are of major concern for everyone from the Prime Minister to the person who sweeps the floors at night.
Of major concern is the real estate market. The good news is that the Governor has paused any interest rate increases, at least at this point in time. That does not mean the rates are favorable. Comparing interest rates now with pre-pandemic rates, they are considerably higher. That impacts any current homeowners with variable interest rates on their mortgages as well as those people who would like to purchase a new house and will need to qualify for a new mortgage.
An Analysis of the Impact of Regulation and Economic Factors
Equally concerning is the data from Toronto Regional Real Estate Board (TREBB) that shows peak listing and sale prices were last reported in February and March of 2022 but are now significantly lower, up to 25% in some areas. This same information states that the days on the market have increased with lower new listings. Couple this with the Federal regulation prohibiting foreigners from real estate purchases in Canada, and the outlook is indeed gloomy.
All of this adds up to current owners worried about being able to continue the monthly mortgage payments and potential new buyers fearful that they will not be able to qualify for a mortgage based on the current and pending rates. If those owners who are on the edge of losing their property are forced to sell, there may be greater speculation about an actual crash in the real estate market.
Opportunities Amidst Uncertainty
However, none of this means that the real estate market is dead right now. While we are far from a solid footing, there are still deals to be made. Companies will continue to transfer employees into the Greater Toronto Area, who will need housing in good communities with solid school systems. People continue to need adjusted living space with expanded families, empty nesting, and retirements. Many people relocate to be closer to family members, especially to be close to aging relatives who will enjoy the companionship and proximity of family.
Right now, Easy House Loan is offering interest rates in the Toronto area at 5.75% on a variable mortgage rate. This is a bargain, and many, many people will qualify for this mortgage. The next Bank of Canada meeting is scheduled for Wednesday, March 8. So, it will be a month before significant changes are expected.
With that in mind, if you are one of those individuals or families that are thinking of a change of residence to or within the Toronto area, or are mulling over the extra income you can earn from an investment in real estate, or would like to refinance your property, you are in a great position to take advantage of the number of quality pieces of real estate that are ready to be sold.
Contact one of our representatives at easyhouseloan.ca. We have staff skilled in the art and science of finding the best mortgage opportunities. We have access to a wide range of lenders and will help you navigate the paperwork necessary to present your best image and get you the deal you deserve.