LEASIDE & DAVISVILLE BLOG

LEASIDE & DAVISVILLE BLOG

Friday, April 16, 2021

BOSLEY MARKET UPDATE FOR THE WEEK ENDING APRIL 16TH, 2021

 







Canada’s bank regulators are pondering whether to change the mortgage stress test rules to make it tougher for consumers to buy a home and take some heat out of the housing market. The Office of the Superintendent of Financial Institutions (OSFI) announced that it is reconsidering the stress test that requires borrowers to qualify for uninsured loans at two percentage points above the market rate or the Bank of Canada’s five-year rate – whichever is higher. The minimum qualifying rate adds a margin of safety that ensures borrowers will have the ability to make mortgage payments in the event of some change in circumstances, such as a loss of income or a rise in interest rates.

Under the current stress-test a household with an annual income of $100,000 and a 20% down payment would qualify for a home valued at $651,000, according to Ratehub.ca. That is based on a five-year fixed rate mortgage of 1.78% amortized over 30 years. The proposed changes would mean the same household would qualify for a home worth about $618,000 – five percent less. You would need to wait to get a bigger down payment or alter your search criteria.

The GTA has seen home prices rising year over year, by percentages into the double digits, but the market gains are being fuelled by real demand rather than speculation, as it was in the over heated markets of 2016 and early 2017.

OSFI says it will decide what it will do by May 24 and if so, changes would take effect by June 1st. It is unknown if the federal government will introduce additional measures when it unveils its budget on Monday. Although Canada’s bank regulator plans to make it harder for borrowers to qualify for a mortgage, economists do not expect this to have a big impact on prices, nor break market psychology that home prices will continue to rise.

Bosley Real Estate Ltd. is a full-service boutique brokerage operating in Toronto, Muskoka, Niagara-on-the-Lake, Port Hope and Cambridge, Ontario since 1928. We have three centrally located offices in Toronto and over 250 sales representatives selling and leasing homes and condominiums in all the vibrant communities we work in. Our brand is well recognized internationally thanks to our unique affiliation with Leading Real Estate Companies of the World. Our sales teams meet weekly to discuss market conditions, trending topics, and anecdotes that more accurately reflect the true temperature of the real estate market. 

Friday, March 5, 2021

MY ANNUAL EASTER COLORING CONTEST IS ON!!!





 

City is Resurfacing Mt Pleasant Rd from Roehampton to Dawlish starting May 2021 to late Aug 2021

 

Something to keep in mind! The City will be resurfacing Mt Pleasant Rd from Roehampton to Dawlish starting May 2021 to late Aug 2021!

A large portion of Mt Pleasant between Eglinton and Lawrence will be closed in part or entirely this summer!

Work will be including removing & replacing sidewalks & driveways. Affected properties will receive a Construction Notice approximately two weeks before work begins with more info.


MARKET UPDATE FOR THE WEEK ENDING MARCH 5TH, 2021


 





What can we say, the GTA housing market is on fire! Home sales rose 52.5% across the board. With February stats out this week, the 905 regions are seeing a surge and the average selling price rose to $1,045,488, the first time it has exceeded the million-dollar mark. Detached houses in the 905 communities surrounding Toronto experienced a particular surge. They sold for nearly 30% more this February compared with the same month last year. The Toronto Real Estate Board is warning that the already hot pandemic market is poised to become more competitive as the year goes on.

With low inventory and high demand, double digit price growth is seen in almost all types of housing. The average price for a detached house in the 905 is $1.3 million up 27.8% from a year ago and in the City of Toronto detached homes sold on average for $1.7 million – up 13.2%. Semi-detached homes outside the city also saw increases of 20% with the average sale price of $1,050,820 and in the City of Toronto the average sale price is $1,324,244 an increase of 10%.

Condo prices also continued to climb in the 905 areas – up 5.4% year-over-year to an average of $563,587. Prices for condos in Toronto are down 6.4% compared with last February to an average price of $676,837. That being said, last month’s 3,116 transactions in the GTA represented a 64.3% year-over-year increase, with both the 905 and the City of Toronto condo sales experiencing a similar gain. If sales continue to outstrip new listings, those prices will rise. Renewed price growth in this market segment is a distinct possibility in the second half of the year.

Bosley Real Estate Ltd. is a full-service boutique brokerage operating in Toronto, Muskoka, Niagara-on-the-Lake, Port Hope and Cambridge, Ontario since 1928. We have three centrally located offices in Toronto and over 250 sales representatives selling and leasing homes and condominiums in all the vibrant communities we work in. Our brand is well recognized internationally thanks to our unique affiliation with Leading Real Estate Companies of the World. Our sales teams meet weekly to discuss market conditions, trending topics, and anecdotes that more accurately reflect the true temperature of the real estate market.