Is Now a Good Time To Buy a House in Toronto?
Buying a house in Toronto today involves a good real estate agent and fast action. Homes have turned over at a record-breaking rate and some wonder if our fast-paced market is ready for a downturn.
It’s not surprising that potential homebuyers might be a little reluctant, particularly after the real estate crash in the U.S. However, experts still feel investing in a home in Toronto is safe. There are many things that set us apart from our southern neighbours which make our housing market a reliable place to investment your money.
Canada Has More Stability
Canada is not the U.S. and there is little threat of our country going through an economic crash such as they did. According to the World Economic Forum, we have one of the soundest banks in the world for six years running. Canada is known for careful, prudent lending that ensures consumers only take on debt loads they can manage. In fact, since 2008 Canada has taken decisive measures to insure that Canadian citizens never face the kind of devastating situation that the U.S. did.
Record Low Interest Rates
Our interest rates are also low and stable. The prime rate dropped steadily from 2008 until 2010 as a direct result of Canada’s lending policies and has flat-lined ever since. These steady interest rates are good news for those looking at homes. There is little chance of a spike in rates anytime soon. Canada’s economy is expected to continue to grow slowly and this will not disrupt the real estate market.
A Moderate Outlook For 2015
Canada Mortgage and Housing Corporation surveys those in the industry and compiles statistics based on annual sales. Their projections back up the suggestions that there will be modest growth. Those looking to buy can still feel confident that their investment is sound. Existing home sales are expected to rise moderately along with economic conditions in 2014 and 2015. MLS sales are expected to rise from 466,500 units in 2014 to 474,700 units in 2015. Local housing markets will stay in or near balanced market conditions with average MLS price rising slightly; 2.1 per cent in 2014 and 1.7 per cent in 2015.
Even Jason Mercer of the Toronto Real Estate Board does not see the strong growth in the market as a problem. He says that the, “Strong price growth has been mitigated to a large degree by low borrowing costs.” The fact that interest rates seem intent on staying where they are or even dropping lower still makes buying a new home an attractive option.
Get Advise and Pre-Approved Before You Start
Anyone who is contemplating a purchase should pair up with a seasoned realtor and an accredited mortgage professional. Our market moves incredibly quickly and no one wants you to miss out on your dream home. Get pre-approved for a mortgage so that when you find a home you like, you are ready to buy. Also, so that you have secured the best terms possible for your mortgage.