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Toronto Buyers Anticipate That Condo Prices Will Drop in the Latter Part of 2015
Predictions suggest that condo prices at the end of the quarter in 2015 will drop. With the modest economic growth in the real estate industry, developers are expected to lower their condo prices to make it more available and affordable to Toronto buyers. For the past years, predictions on possible condo slumps were not materialize due to economic downturn. This year, more and more new condo units are hitting the market and for this reason, there will be a noticeable moderate growth on condo sales.
What could be the possible basis for Toronto’s condo market predictions?
Urbanization, downsizing, and immigration movement of young families who choose to live in the urban areas with low mortgage rates are the main basis for the Toronto’s condo market predictions this year. If this will continue, the condo sales are expected to drop. So, there is no need to worry for possible downturns. However, condo rates will still depend on the market performance.
Some economists are expecting that Toronto real estate price will climb further by 4%. But, this possible rising interest rates are yet unknown. Condo watchers are now keeping an eye on the buoyancy of the Canada’s housing market which remained buoyant due to low interest rates.
With this prediction, the condominium market enjoys the positive economic outlook. Though there are some real estate marketers who are expecting to experience a soft landing within the year. Condo owners and sellers are anxious about the market performance of the overbuilt condominium units which may lead to possible offshore demand. The bigger test is yet unknown, but one thing for sure, a soft landing result will surely not as bad as the economic downturn in 2008.
Does it make sense?
The prediction of the economic experts are usually based on the Canadian interest rates which quite confusing. They say that the condominium market is not in boom at this moment though it is stable. Remember that the interest rate is not the sole factor that regulates the real estate market.
Basically, the interest rate is determined by the law of the demand and supply. In the event that the interest rate increases more money will be generated in the market which can crash the real estate industry.
The Canada’s real estate market is said to be lucky for having low interest rates ever. With so much rate movement for the past ten years, the country is starting to make some changes again in response to the high market competition.
What to do?
First-time buyers still hope of seeing condo prices to be reduced at the end of the year. Meanwhile, spend more time to analyze the value of the market trends before your purchasing decision. In cities like Vancouver and Toronto, you need to seek help from a professional realtor to guide you in the buying process. Make sure you know how much your investment will cost you. Broaden your property search in both urbs and suburbs to find a greater location, more affordable property, and great transport links.
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