Well, Well, Well.BILD GTA is backing up the Toronto Skyscraper Blog on a post I made last week, regarding the Scare Tactics of the Bank of Canada concerning highrise building growth in the Toronto Market. In that blog, I stated that the Bank of Canada was using historical data over the past 40 years to make it's analysis of the Toronto highrise market. You don't have to be a brain surgeon to recognize that living patterns were way different in the 1960's, 1970's and 1980's to determine that the Bank of Canada's lack of understanding of the highrise market at least in Toronto.
New Trends in Condo Buying Emerging in the Toronto Area
A few new trends to watch out for in the Toronto area when it comes to buying homes as well as buying condos. When it comes to buying homes, the latest tactic is to put a property which had previously been listed on the MLS system, on a bidding site, or list through an auction house to get buyers, sending the price of single detached homes soaring.
As for condos the latest buying technique is the new trend with regards to micro housing, or micro condo living. And we’re seeing now, specifically designed condos to meet that purpose. Another new trend to look out for is the lack of supply in the purpose built rental housing market in Toronto. Even as new condos come online there remains a shortage of apartments built specific to that purpose, so condo rentals have increased even as vacancy climbs, rentals rates do as well.
Busy Condo Market Boosts Toronto Home Sales
With fewer homes in the detached category available in Toronto, new home buyers seem to be opting for new condos, with sales heading forward at a rocket pace last month. Sales of Existing Homes in the Toronto area moved up by a whopping 2.1% in February 2014, and that is compared to the same time period last year. That was mainly due to a 12.5% increase in the sales of condos within the city so stated by the Toronto Real Estate Board. That will contrasts with the sales declines that occurred in townhomes, detached and semi-detached housing during the month, which was mainly due to a constrained supply of those housing types.
The Canadian Home Mortage Corporation (CMHC) set to alter Mortgage Insurance Rates
The federal agency which regulates mortgage insurance in Canada is set to alter the rates which is charges new home buyers to insure their mortgages against the risk of default. These premiums which new homeowners must pay to get CMHC insurance may also impact the ability of homebuyers to purchase their homes. The federal government has been trying for quite some time to reign in the Toronto and Vancouver Housing markets where the average cost of a single family detached home has now reached over $1 million dollars.
There was a time that low rise housing was king in the GTA Market, when there were unlimited tracks of farmland to build suburban style homes. Let's ask a question then: Would the Bank of Canada Care if All those highrise changing the Toronto Skyline were single family eco-destroying bungalows? Somehow, I don't think so. See no evil, hear no evil. But these is a boom, that is changing Toronto in a major way into a global metropolis and the powers that be around the country seem intent on putting a stop to it. Why does when anything happening in Toronto that has even a marginal economic benefit, does it need to be stopped?
This is the world we live in now:
BILD Why, are there so many condos under construction?
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