Mortgage Broker Toronto – Paul Meredith
As we ring in the new year, many people in the industry have released their predictions for what we can expect for the Canadian housing market in 2017. Being a mortgage broker Toronto, this is obviously something that I take great interest in as I believe it can help me help my clients navigate the market.
It’s no secret that 2016 was an extremely hot year in the real estate market as many cities across the country hit record-breaking numbers. However, that doesn’t necessarily mean we will see the same in the new year.
Per a Global News article, experts are predicting that Toronto will remain hot and be the strongest market in the nation in 2017. The reason for this is due to supply and demand; the lack of inventory for detached and semi-detached homes is still an issue, especially because so many people are looking to buy. This ultimately increases home prices.
Another expert predicts that the Toronto market may cool slightly in the new year but remain the strongest in Canada. They also noted that while home prices are sure to increase, it isn’t likely to be as extreme as we saw in 2016.
The article also touches on Vancouver’s market, a market that was also red-hot in 2016 but saw a cool-down effect in the later months of the year. After experiencing heavy increases throughout most 2016, home prices dropped in the latter months due in large part to the new foreign buyer tax the Canadian government brought in.
Much like Toronto, Vancouver still has a supply shortage though, and when there is a lack of supply and high demand, prices go up.
Overall, experts are predicting that the Canadian housing market will cool a bit in 2017 or stay the same. One of the major reasons for this is the new mortgage rules that the government implanted in October and November of 2016, which now makes it harder for qualify for a mortgage.
The new rules require homebuyers who are seeking an insured mortgage to pass a stress test and qualify for a mortgage rate that is the posted five-year rate from the Bank of Canada, a rate that is often higher than your typical bank rate.
What could these factors mean for the market in 2017? Will the price of homes decrease or stay the same? Or, could they even rise further? All of this remains to be seen, but it will surely be an interesting subject to watch as we welcome 2017.
If you’re considering buying or selling a home in an area as competitive as the Greater Toronto Area, consulting a Toronto mortgage broker like myself can benefit you in many ways.
Whatever your mortgage needs require, I can help. For more information, contact me today!
Source: http://globalnews.ca/news/3126731/what-the-housing-market-could-look-like-in-2017/
