The Toronto real estate commuity is happy with the results of the new rules for mortgage insurers that Canada's finacial regulator put into place to dampen activity in the Toronto Market. Local Real Estate Agents were extremely happy the new regulations will do little to slow the rising condo and home market in the Toronto Area.
The new regulations, came out earlier this week, have been under development for almost two years. At that time the financial regulator, the Office of the Superintendent of Financial Institutions, was extremely concerned about the over heated Toronto Condo Market and what impact any correction would have on the national real estate market as well as the economy.
After the condo market slowed the regulations, which are referred to as B-20, had over-reaching goals that indicated exactly what banks need to do for the OSFI to see that they were properly scanning potential homebuyers before issuing loans ad mortgages.
The new regulation called B-20 also set a limit on exactly what homeowners could fianance on a home equity line of credit at 65 per cent of the assessed home value.
OSFI deputy superintendent Mark Zelmer has indicated that the new guidelines should ave a limited cooling effect on the Toronto Housing Market. The new rules were actually writte more for the mortgage insurance companies, than the Chartered Banks.
The new regulations spell out what all Canadian mortgage insurance providers need to ensure as they do not want to take on too much risk. So as such the mortgage insurance companies will now be responsible for ensuring the good faith of the loans made by the Chartered Banks.
The concept is for the mortgage insurance backers to adhere to practices which will minimize bad loans through the banks that they ensure. In so doing the full set of rules could have a tightening effect, but industry players say any such impact will be small.
Thursday, 17 April 2014
Wednesday, 16 April 2014
Overall March turned out to be a pretty good month for Toronto Condo Sales, even as condo sales recover from 2013, which is one of the worst years in the past decade for Toronto condo sales. The median prices have inched up about 2% in the year over year period and product supply has improved as developers have launched more than 40% new product this year than they did in the previous year which was forecast as being a down year for property sales from the get go.
Condo sales and property sales will continue to be hottest for in demand neighbourhoods such as Yorkville, Southcore, St. Lawrence Market, Carlton-College-Yonge, and the Entertainment District.
Average prices for condos in the core are now averaging around $400,000 dollars for medium sized units although deals can be had on smaller suites at pre-construction pricing. On the other hand developments in the outer ring of suburbs such as Scarborough, and North York can be had for less depending on factors such as neighbourhood and amenities such as nearby transit.
Condo sales for 2014 are already showing a massive rebound from 2013 which was the first major decline in the Toronto condo market seen since the boom began on the Toronto scene in 2001- 2002 year.
Tuesday, 15 April 2014
With Massive Sales Sucess at Wellesley on the Park, and Yonge and College Condos the Toronto Downtown Real Estate Market is Back!
If you were hoping to purchase a downtown condo in Toronto in the near future you are in luck. There has been a flury of new development releases this year in comparison to the same time period last year, when condo sales were in a funk and developers were holding back product. Now the condo market looks to be in comeback mode and new condo releases have been testament to this new fact.
Wellesley on the Park is currently in pre-sales and the word is that sales have gone very well before the official launch which is expected sometime later this month, or next. And that follows the blowout success of the Yonge and College Condo which actually was 85% sold within the first week.
Those looking to own their own home face a far more difficult scenario, as the detached market moves further and further out of reach for prospective Toronto homebuyers with prices now over 1 million dollars plus for homes in the downtown core. Condos remain an affordable option with prices starting from the mid-$350 000’s and even less depending on where you are looking to purchase, and what kind of unit you desire to own. Average listing prices for new condos in the Toronto area are now in the 350-400k market for new units in good buildings in desirable parts of town.
People tend to look at the track record of the developer in unloading new units to determine the sales success of the building. How fast, how many and for how much do the units go for? Before the massive recession of 2008-2009 when developers had to deal with higher interest rates this curtailed the ability to charge very high prices due to high interest rates, then when the market crisis forced rates downward, it made condo units more affordable, and prices went up as did the sales of Toronto condos. Now after three years of year over year sales improvement the condo market came back to earth in 2013, but look set to rebound for 2014.
Monday, 14 April 2014
Condominium prices in increased in downtown Toronto on a year over year basis in March 2014, and this is especially true for high end executive and premium residences. These increases follow a few years of stagnant growth in the face of government initiated policy to slow and / or stop the Toronto condo market from overheating in the past few years previous to 2012, when the condo market was firing on all cylinders.
The price per square foot of Toronto condos also has been rising at about an average of 1-2% year over year. And while that type of price appreciation may not be much in comparison to the price rises seen in the single family detached home market in the Toronto core, it is still better than the predicted crash which had been predicted for the city.