Aug 30 2017
During the beginning of the year, experts were making predictions regarding an upheaval in the economic and realty sector of Canada and it seems that the month of June has validated all the predictions. Even with availability of the LOWEST MORTGAGE RATES IN TORONTO, a huge decline is seen in the real estate demand in Canada's commercial hub as well. But this decline has given birth to another important question: is it simply a soft landing and we are emerging from it or just the beginning of the disaster in realty sector and frankly speaking a housing crash?
Well, according to the expert, this is just a soft crash. Based on the data collected by Toronto Real Estate Board, the sales of home were down by 3.2 percent in the month of April, followed by decline of 20.3 percent in May and 45.0 percent in June. As far as the data is concerned, the month of June showed the most troubled turbulence.
Again, another trend was seen during these months. There was a continuous rise in the listings of the new homes. As compared to June 2016, there was an increase of 15.9 percent in June 2017. This gap between the demand and supply made the rates of realty sector, both residential and commercial to take a nosedive. According to TREB, the main reasons behind this is the fact that the market is now swiftly and better supplied and the sales were declined for high end, detached homes.
If the trends are carefully analyzed for the year 2017, there was a steady decrease in the selling of homes till the month of May and gradual increase in the number of new homes in the listing. This made the investors doubting the sustainability of the rising of home prices. But the month of June brought some good news as a drop was seen in the listing as well.
This further bridge the supply and gap demand and boosts the confidence of realty sector as well. Moreover, such data encourages the investors to go for the loans being offered to them at the lowest mortgage rates. We can soon expect investors to benefit from the available LOWEST MORTGAGE RATES IN TORONTO. Therefore, both the buyers and sellers can expect the equilibrium to return the market as the listings are going to witness the drop. For other updates, stay with us and keep an eye for updates!