There has been a strange effect on the Toronto condos market due to the more stringent regulatory measures implemented by financial institutions for Toronto real estate regarding mortgage qualifications. It appears that, while sales for new Toronto condos dropped by 66%, prices per the average unit increased by 40% in the month of March.
You may ask yourself, "What the heck?" I mean, does this make any sense for the Toronto housing market?
Industry experts on the Toronto real estate market have explained this strange but true reality of new Toronto condos in the following manner. While homefinders have less buying power due to the new mortgage rules which centers around a "stress test" resulting in less buyers qualifying for a mortgage & for a lesser amount, there is a shortage in supply of Toronto housing.
This means there is more of a demand for the smaller, more affordable homes & less demand for bigger, expensive homes. In terms of Toronto real estate, this translates to smaller Toronto housing, like Toronto condos selling for more and Toronto home prices of more expensive luxury homes coming down.
Living in Toronto means embracing this new landscape of Toronto real estate.
This seemingly strange correction to Toronto house prices in the Toronto real estate market in fact, may not be so strange at all as traditionally, when bubbles appear to be bursting, the bigger bubbles alway burst more!
If you are looking to buy or sell in this market, it is always best to start with a free no-obligation consultation by calling us at 905-796-5200.