The real estate forecast of Toronto – 2018 are predicted by the transaction rates received during the past months in 2017. The first statistics of the month of July shows decline in sales of about forty- five percentage. In the first half of July, the homes were sold for about $760,356 while in the latter part of July the homes were sold for $707,847.
Many neighbourhoods of Toronto has suffered a loss and investors had to find that out the harder way. The month also had a higher loonie, higher mortgage rates and foreign buyer withdrawal. All these made the home buyers lose interest in purchasing new homes and the home owners to sell their property for a lower price.
The Toronto city home prices are very volatile, and the prices have fluctuated a lot in the year 2017. It is believed even with the fall in prices in the month of April in Toronto the prices of homes can still increase in the following year.
The following are the some of the reasons for prices to fall in Toronto.
- Housing demand.
- Housing supply.
- Developable land.
- Builder Red type.
- Mortgage rates.
- Down Payment and Mortgage rules.
- Toronto Region employment.
- Buyer Income.
- Home or Condo Prices.
- Demo graphics.
- Many renters.
- New Home constructions.
The requirements for houses are highly increasing with the increase in the immigrant investors and low-interest rates creating a demand on property management companies and home owners.
With the growth in the investors, the supply of the houses is throttled. The amount reduced as there are too many investors.
The developable land handled by the government of Canada which is a significant factor for the prices to fall in Toronto.
Builder Red Type:
The builders in Canada are not able to build houses even if they have enough money to do so because of high exposure to financial loss.
The Mortgage rates are continuously lowering especially with the global economy falling very badly. The lending rules are made more tightened; so the prices are more volatile.
Down payment and mortgage rules:
The down payment is tightened which takes the pressure off the purchase markets and puts more pressure on the rental market.
Toronto Region employment:
The Toronto region work remains moderate despite the national infrastructure affecting the employment.
The taxes are also highly increasing due to the government of Ontario and the expenditure of federal government.
Home and Condo Prices:
The home and condo prices are rising at an increased scale.
With the next generation coming of age and starting their own family require to buy homes for their families cause a high demand in the price ranges in this market.
Due to the mortgage lending rules, some people who want to rent a house also have increased to a significant scale.
New Home Construction:
To construct new homes, you would require new land spaces which are again not available due to the green space act.