Wall Street Journal Gets Excited By Sales Slowdown in Toronto

Wall Street Journal Gets Excited By Sales Slowdown in Toronto


When Sales slowdown in Toronto, its not just the nay sayers here that get excited by the news, the Wall Street Journal (Canada) is getting pretty excited by a downturn in the Toronto Condo Market. When sales return to historic levels in Canada's biggest city, there erupt such signs of glee, you wouldn't be able to tell if sales slowed down in Toronto or journalist all over the world similtanously won the powerball lotto.

Why do they get so excited when there is any bad news surrounding the Toronto condo market, why don't they want to stick to the facts of reporting that the Toronto Condo Market is just hitting it's historic average at the moment. Come spring, the slowdown will be more evident, but it's nothing to start ringing alarm bells for. What these guys at the Wall Street Journal need to worry about is their own, Fiscal Cliff, which it looks very much likely the United States is about to fall right over, and the last time the United States went into financial meltdown, Toronto went into economic superhero overload. 

I'm couting down the days, you've got 8 till the end of stupid Toronto condo bubble articles, and then we will finally have some peace here 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. 

RBC Financial Group Warns, that Rising Mortgage Rates will Make Home Ownership Unaffordable for Most Canadians.

The Royal Bank of Canada is warning that the tide of rising interest rates will make home ownership for most Canadians unaffordable. This will be very true in Toronto and Vancouver where home prices have recently climbed over $1 Million dollars for a single family detached home.  Servicing of interest related to home ownership such as mortgage rates, as well as mortgage insurance are set to rise, or have been rising over the past year. The longer term interest rates are moving at such a pace that the incomes of most Canadians will not be able to keep up.  The good news however is that the rising interest rates foretell  a improving economy for most Canadians looking to improve their financial situation