In mid-August, Toronto feels like city waiting with breath. Real estate market is drowsy and seller are anxious to know that when it comes back to the full consciousness in month of September. Boris Kholodov, an agent at Royal LePage Real Estate Services ltd. said that they are not sure that whether market has slowed down for summer for normal or seasonal market reasons.
It seems that many real estate agents are trying to grapple with suspense. Sal Guatieri, a senior economist at Bank of Montreal expected housing prices that peaked in month of April in Greater Toronto Area continue to fall down in coming months before the stabilization. Mr. Guatieri pointed out that positive surprises from economy of Canada kept on coming. For 2017, 3% growth in the domestic products will be strongest in 6 years and twice of the last year’s rate. Jobless rate in 9 years has lower down, consumers confidence at 7 years high.
Out of rapidly cool housing market in Greater Golden Horseshoe, every economist indicator is pointing high. He expects that Bank of Canada to take follow up hike in interest rate in month of July with an increase in October and 2 more in year 2018. Fair Housing Plan of government of Ontario included 15% tax on real estate which are purchased by a non resident speculators in Greater Golden Horseshoe area, it was a welcome reality check for the buyers which are notably for the domestic speculators who were flipping homes just like pancakes.
In the Greater Toronto Area, sale of existing houses has plunged by 40% in July as compared with same month during last year, with the detached houses that lead to the decline. Mr Guatieri said that sensing top, sellers have flooded previously parched landscape with the listing, shifting market balance towards the buyers.
In Toronto area, price of benchmark of detached homes has fallen down by 8% from April’s peak. This decline has taken place quickly than drop recorded in Vancouver area market after B.C government which introduced a tax on buying by foreign buyers, as per economist notes.
Mr. Guatieri’s statement that prices in GTA will get stabilize and is based on assumptions that central bank’s rate will get increased and will be minimal too. Ke also said that Office of Superintendent of Financial Institutions will get scale back a proposal to impose the higher qualifying rates on the uninsured mortgages.
Mr. Kholodov receiving many calls from the owners who have plan to list their condos or houses units for sale, but most of them want to wait until October or September. He said that he thinks that there is no harm in waiting as they are not in hurry.
He also added that some of the buyers may be hoping for deal but they don’t have lots of bargaining power in Toronto because inventory is so much slim. Right now it is not working because there is nothing to sale out.