Canadian Real Estate — Paradise for investors.
Canadians are still looking to buy detached homes, which remain in short supply in Toronto and Vancouver. That demand has pushed home prices higher despite the availability of condo apartments. Prices in Greater Vancouver were up 15.33 per cent from a year ago, while Greater Toronto was up 10.33 per cent. Vancouver and Toronto being examples, many think that Canadian real estates are over priced and much of the high priced properties are being purchased by foreign families that aren’t slowing down. A correction there is not so likely because of that. Toronto and Vancouver have created a lot of jobs, and it’s attracting migrants from around the country and the world. The national job numbers may look weak, but what job growth there has been, it’s largely been in these two cities where house prices are out of control.
First time buyer should keep saving. Saving more money for a down payment is never a bad thing, and when you are renting, you have much more flexibility on closing date. Start to learn the stats for the segment you’re interested in. i.e. how many condo units on the market, how many months of inventory does that translate too, average list & sales price of those units, how are those numbers trending, Home Price Index Benchmark Price, Interest rate changes. Being educated on those terms will give you a good idea of the market and what to offer when it comes time.
Some fear the Canadian real estate is heading for a bubble and may collapse like we saw in south of the border. There were few corrections in the market in last year but those are common. The collapse that we saw happened south of us, was really a result of the banking system and the lending programs they had. Introductory rates and payments etc. The buyers could qualify based on those rates. (Intro rate of 3% for two years then 11% after that!) and people couldn’t afford those new rates. Here we must qualify on posted rates, and most likely get better than that for the term. Also, in the states, home owners could legally just walk away from a home without the liabilities that we have here in Canada. Causing many people to just walk away the second it became worth less than they owed.
Find Your Home Here — www.ashiro.ca