 |
| Toronto Condo Sales Declining - 3rd Quarter 2012 |
Listen I'm all for greater growth, but I would not want what has happened in the United States to happen here. So moderation is key, in terms of our future growth, not only for construction. But growth as a city.
Here is an snippet from the Toronto Star, regarding the condo inventory situation in Toronto as it stands at present.
Toronto Star : Price Growth is Flattening Out
But condos are another story, with some housing analysts predicting significant price drops to come as more new units hit the market and the inventory of units for sale climbs higher into buyers’ territory.
“Given the supply of listings currently in the market place, the average rate of price growth for condo apartments should continue to lag price growth for low-rise home types over the next year,” said Jason Mercer, TREB’s senior manager of market analysis.
Only time will tell how deep this down cycle is, so far, we've managed to escape the worst of any type of market collapse that has been predicted by the experts for years. Toronto is still a prime area for young people, and it is young people and their desire to live downtown close to work and recreation that is driving the condo market here. Something the experts love to forget so conveniently.
Getting a Mortgage and Mortgage Insurance through Economical Insurance for financing a loan to purchase at FIVE Condos is actually a relatively easy process, and new rules from the federal government has required that company include new regulations, which have made the home loan and mortgage process a bit more difficult. Those changes at Economical Insurance include shortening the amortization period for which the loan can be held by the consumer, and the degree to which the property is financed by the mortgage. They have also increased deposit requirements to lift the loan insurance amount. Mortgage insurance from Economical Insurance is actually one of the major financing costs on home loans. Investment Trusts have no taken to looking to purchase rental properties and acquiring mortgages through financing auctions by the banks looking to shore up their balances sheets in light of stricter government regulation. These regulations have actually made holding residential mortgages by the large financial institutions harder to hold. Currently investors are looking to increase their position in rental properties in Toronto, at the same time the federal government in co-operation with the financial institutions are making getting and qualifying for loans and mortgages more difficult Economical Insurance : What is Condo Insurance? Condo Insurance is required to protect your personal contents from theft or fire damage in your condo if these unforeseen events should happen you should make sure that you have adequate protection. Some items in your condo are will also be protected by your condo association insurance policy which covers the general building. The events that are covered by condo insurance include Fire, as well as Lighting. Other weather related causes such as Windstorms, and Hail are also covered. The major one that most people worry about is theft which is covered by condo contents insurance policies. Toronto Condo Market Report – February 26, 2014 Toronto Condo Prices continue to trend upwards, as sales also move up with general improvement not only in the Toronto economy, but the nation as a whole. Condo sale prices have not increased to the same degree as detached family housing, due to new supply coming onstream. However fears of a condo bubble, have not proved accurate, as trends move to the upside. Average Home prices are still up in Toronto, and look like they will continue to rise for the remainder of 2014. Year over year, detached housing prices increased by over 14%. Just amazing.
No comments:
Post a Comment