You may have heard that the strict mortgage rules and a rise in interest rates have caused a decrease in the number of home sales in Toronto recently. This may not be music to your ears whether you’re a buyer or a seller, but there are still plenty of opportunities in the market. Here’s what to expect around the real estate landscape in Toronto for 2019 and how you can take advantage of the market this year.
The big banks have forecasted a series of interest rate hikes this year, but with the recent trade tensions, tariff rates, and the current oil situation, the rates might not climb as fast as experts predicted. If the Bank of Canada keeps interest rates relatively low, this will help buyers who are facing a stress test in order to qualify for a new mortgage.
Some people have been expecting a downturn in the market this year. However, the supply for new homes within the GTA still remains relatively low. Experts believe this will help stabilize the market during the coming year.
The ever-increasing cost of renting in the city has changed the calculation for many people deciding whether to rent or buy. With the rising rents, it’s making more and more sense to buy if you can get a down payment together and qualify for a mortgage. But be quick, as experts expect Toronto to move back to a seller’s market in the years ahead.
With a number of condo developments nearing completion and coming to market, we can expect to see prices balance out in this area. This is great news for buyers who have been wanting to get into the condo market but have held off because of aggressive pricing. While competition will still be fierce, it’s important to have a pre-approved mortgage and knowledge of the market options.
The desire to live in the city is still strong. Toronto is a trendy city with a flourishing economy that continues to grow and offer competitive salaries to workers. Net immigration to the GTA is expected to hit a 15-year high with more demand for housing on the horizon. This will help drive an uptrend in the housing market.
As Toronto adjusts to the past policy measures put in place by the Bank of Canada, we should see modest price growth. In contrast to some of the wild swings experienced in recent years, many experts are predicting increases at a more gradual rate, which is good news for both buyers and sellers in 2019.
When you’re ready to buy or sell your property, or explore mortgage opportunities, contact us at Medallion Capital Group. Our team of advisors are committed to finding you the best solution for your needs. We stay on top of the market to ensure that we can tackle any challenges that arise, no matter the current market conditions.