As spring approaches, inventory of Rosedale real estate for sale is increasing. Prices for detached homes have begun to rise in many areas, while others are still going through an adjustment phase. These adjustments reflect the changes in the market since mid-2017. This was the point when two pieces of government legislation hit.
One was the non-residents tax and the other – later event, was the Stress Test for mortgages. The latter was introduced to help prevent consumers from taking on more debt then they could handle, in case of interest rates hikes in the near future. The former was placed to help cool what was perceived as an overheated housing market, especially in the Greater Toronto Area (GTA).
As far as Rosedale Real Estate for sale goes, this area was aﬀected somewhat with the market corrections over the last year. This neighborhood has tended to rebound the fastest due to its proximity to the downtown core and it stately homes, much desired by families. Currently the inventory of Rosedale real estate number at 23 homes. Quite an inventory for the early spring market. Prices from an MLS review range for just under one million dollars to upwards of 22 million and many price points in-between. If you have contemplated a Rosedale real estate address, now might be the time to consider hopping on board before a potential price increase and prices wars potentially return in the summer.
Many factors will influence the real estate markets in the near future. With a provincial election looming and no clear front-runner, the results could well influence future pricing and market trends. If a candidate that is running, who shall remain nameless, has promised to remove the foreign buyer tax AKA the non-residents buyers tax. This could and will increase foreign investment in the province and likely lead to another round of price increases in the area.
The other factor in pricing is that new construction projects are reaching and approaching
$1000 per square foot while resale condo properties have yet to hit that threshold across the board. New home construction in the city center tends to be limited to infill and demolition and rebuilding in well-established areas. First time home buyers have made an exodus from the market when the new “Stress Test” mortgage rules were introduced. These rules require all home buyers to qualify at two percentage points about the key lending rate on a 5 year fixed mortgage. Currently, those rates range from 2.99 to 3.39 percent. Meaning the qualifying rates are 4.99 to 5.39. These could be even higher based on the individual.
Many don’t understand that this actually aﬀects how much an individual or couple can aﬀord. Those two extra percentage qualifying points mean that on average the amount that one can aﬀord for a new home purchase is at least 100K less than previously. For first time buyers in the Greater Toronto Area (GTA) this lower qualifying price point literally has priced first time home buyers out of the detached home market and many times out of the current condo market.
For more information on market trends, prices trends in your area or other real estate questions feel free to contact me at 647-898-7490 or via email at email@example.com