“Simply put, don’t expect a housing bust in the near future, but don’t expect lower mortgage rates, either.” – Bank Of Montreal
Below is some commentary on the current state of the market from our parent company, Bosley Real Estate, as well as some choice headlines from the second week of August!
Boom or bust? Where is the real estate market headed? Vancouver had it’s lowest July sales since 2000. In Toronto, seasonally adjusted sales and prices climbed higher in contrast. For those of us expecting to stay in our homes for the long term – the absolute price now doesn’t really matter, but knowing a home nearby goes for a great price makes us feel better. For those who recently bought, they have a bigger stake because the mortgage represents a big chunk of their house and rising rates and falling home prices could mean disaster. There is no current sign of a bubble popping. We might have weak sales, but prices continue to recover from last year’s slump. The problem is housing supply!
Canada’s population growth has passed the 37 million mark, having grown by 506,000 this year. It’s the fastest percentage growth Canada has seen since 1991-making it the fastest growing country in the G7. So, homebuyers waiting on the sidelines to see if there is a slowdown, might be waiting for some time. International migration accounts for the largest share of this growth – a record 380,000 people moved to Canada in 2017.
Some of the big boost to house prices in the Toronto and Vancouver areas has been the result of this population boom, and analysts believe that growth will continue to prop up the housing market. The first half of the year saw sales down as a result of tougher new mortgage rules that went into effect, plus rising interest rates. We are now seeing a correction response and sales in the GTA are starting to stabilize.
This trend could have a downside for mortgage borrowers. Faster population growth increases a country’s economic potential, which can lead to higher inflation and possible higher interest rates.
“Simply put, don’t expect a housing bust in the near future, but don’t expect lower mortgage rates, either.” BMO
*Bosley Real Estate Ltd. is a full service boutique brokerage operating in Toronto, Niagara-on-the-Lake and Port Hope, Ontario since 1928. We have four centrally located offices and over 250 sales representatives selling and leasing homes and condominiums in all the vibrant communities we work in. Our brand is well recognized internationally thanks to our unique affiliation with Leading Real Estate Companies of the World. Our sales teams meet weekly to discuss market conditions, trending topics, and anecdotes that more accurately reflect the true temperature of the real estate market.
HERE ARE THE TOP FIVE TRENDING STORIES OF THE PAST WEEK:
Waiting to see if declines in real estate sales translate into falling prices: Don Pittis
“The Canadian real estate industry is used to disregarding gloomy predictions. But now, after a decade of laughing in the face of repeated false warnings that a housing slump was imminent, most Canadians affected by real estate — in other words, just about all of us — have suddenly become a little more wary”
Nearly 1/4 Of Canada’s Retiring Baby Boomers Still Have Adult Kids At Home: Survey
“With housing affordability deteriorating, it’s only getting harder to move out of the family home.”
Toronto home search moves to smaller Ontario cities
“Three years ago, you could buy a house in London, Ont., for $234,000. Today, it will cost you $364,000.”
Bidding wars expected to come to Montreal’s real estate market
“In contrast to mixed performances in the Toronto and Vancouver markets that tend to dominate headlines, Montreal’s market is on a solid upward trajectory.”
New Zealand Bans Foreign Buyers Amid Soaring House Prices
“This government believes that New Zealanders should not be outbid by wealthier foreign buyers”
Did you miss our first August round up?
Steven Fudge, Sales Representative
& The Innovative Urbaneer Team
Bosley Real Estate Ltd., Brokerage – (416) 322-8000
– we’re here to earn your trust, then your business –
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