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Residential Real Estate in Toronto

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Residential Real Estate in Toronto

Residential Real Estate in Toronto

Since the real estate market dropped in 1990, it has rebounded to become a stable and growing market in all aspects. As Toronto becomes more and more urbanized the demand for housing keeps going up along with the population.

It only makes sense that the more people there are the more houses that will be needed; unfortunately, the amount of housing is not keeping up with the growth in population and the availability for land keeps going down. Because of this situation of high demand and a narrow to low excess supply, the pricing for housing is considerably increasing...

Consumers are out bidding each other’s offers driving up the selling price higher and higher. This demand has made a historical impact on the re sale market because sales and demand are hitting all time highs, consumers are desperate to purchase, but unfortunately the homes are not readily available.

Interest Rates

You are getting �more bank for your buck’ as some people would put it; mortgage interest rates are lower than they have ever been in 30 years. This is a large factor when it comes to purchasing a home because it greatly increases the affordability of homes to the average person. People that previously could not afford a house can, and people that already have a house can now afford a larger one. Interest rates vary according to specific details such as the length and personal credit, but as of today according to �Statistics Canada’ they are averaging around 6% oppose to around 7% 5 years ago. In the early 1980’s, mortgage interest rates were exceeding 20%, more than 3 times higher than today’s, though only for a brief period of time. This shows that interest rates can fluctuate, so buying a home now while interest rates are low is not only practical, but also affordable. First time home buyers have the luxury of purchasing a home earlier in their life and being able to manage mortgage payments easier. One downfall would be because the interest rates are so low, more people are buying homes putting a larger demand on the current supply and forcing prices up. The level of interest rates will almost always determine the health of Toronto’s real estate market. There are many variables, some of which are governments trying to increase or decrease inflation, imports, exports, investments, reaction to world policies, supply and demand of money, so depending on which bank you go for your mortgage, the rate of interest will be slightly different. They all compete for your business. Regardless of the reasons and there is always a direct impact on the house buyer with respect to the mortgage rates. These constant lower rates have fuelled a great demand to Toronto’s market, but unfortunately credit card rates have put a damper on the active market. However, homebuyers will wait to buy, upgrading their present homes, once the affordability is there.


It is only logical that the more people that are employed, the more people would have the money to afford a home. Not only did the employment rate go up, but also the average disposable income in Canada has been on the rise. This shows that more people can afford homes. In general, the southern Ontario geographical area has been the engine that runs Canada as far as the location of industries, trade and commerce. In particular, the Toronto area today has many opportunities for someone looking for work, making unemployment very low. Today in the Toronto area, the affordability of an average older 3 bedroom home has never been so good, although the prices are higher than ever, the population are employed and putting money towards buying real estate.

First Time Home Buyers

Through the help of a new �plan’ put into place by the Canadian government, home buyers are allowed to borrow up to $20 000 from their RRSP contributions and put this money towards the down payment of a home; this allows them up to 15 years to pay it back. Therefore it is a major incentive for a younger audience that would normally be purchasing a house to do so. The majority of these buyers purchase entry level homes, which is just �less expensive’ housing. On average they live in this �entry level’ house for approximately 5 years. During this time many homeowners modestly renovate, landscape and beautify the exterior of their home. As a result of this upgrade or improvement along with the increase in market value, they feel confident in asking for more than what they purchased it for. On average homeowners get 20% more than they originally

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