Market Update

Squeezing Past a Rock and a Hard Place

Last Spring was a discouraging time for many attempting to buy real estate with prices excessively high in the Greater Toronto Area including Aurora.

When the Ontario Government stepped in to counter the influx of foreign real estate investors by introducing the Fair Housing Plan, the bustle and bubble of action by Buyers plummeted causing pricing to adjust all while supply steadily rose.  A slower market was anticipated but not for the balance of the year as was felt in Aurora.

Housing affordability continues to be a challenge and with new lending ‘stress test’ guidelines  from the Office of the Superintendent of Financial Institutions (OFSI) in place since January 2018, qualifying for a home will likely still happen for many consumers but the maximum pre-approval rates could be as much as 20 per cent lower than Buyers may have qualified for in 2017.

That being said many lenders who exercise caution and prudence have used stricter criteria as good measure well before new guidelines were recommended and many REALTORS® especially those with Accredited Buyers Representative Designations ask their clients to gain pre-approvals before they shop but aren’t concerned by what the top dollar is.  These agents historically will ask instead what the Buyer who is pre-approved is comfortable spending which often times has been far less than the pre-approved rates.

Higher mortgage rates hit many homeowners hard and Buyers will likely continue to proceed with more caution, hesitation and more due diligence before taking action making offers with multiple conditions.  In a slower market Buyer’s try to time their actions perfectly anticipating dropping prices, but there’s no clear indication a drastic dive in prices will occur in the Greater Toronto Area (GTA) due to steady demand.

Book a face to face discussion with a REALTOR® today and request all of the data available on the home you’re considering purchasing and have the real estate specialist share all of their research.

-written by Connie Power

Connie Power is a Real Estate Sales Representative CNE® SRS® ABR® SRES®, Mentors and Develops New Real Estate Sales Representatives for RE/MAX Hallmark York Group Realty Ltd.,  Brokerage serving York region and beyond in the Greater Toronto Area (GTA).
Empowering you in Real Estate, Call Connie today to make an appointment to discuss your next move at (905) 726-0856.

***Not intended to solicit those currently under a real estate contract.