Homes and Condo Mississauga

In Toronto’s Housing Market, The Party Really Is Over, Latest Data Shows

The ever unsustainable mole which was the housing market in Greater Toronto has slowly crept, with provisional data for February showing that sales plunged and prices were well above the peaks of last year.

And possible recovery is probably free for some time, says John Pasalis, president of Realosophy Realty.

According to Pasalis & # 39; provisional analysis of the numbers in February, the sale of low-rise homes fell by about 38 percent compared to the same month a year earlier. By the end of the month, it died, with sales that have been as high as 45 percent in the past two weeks, says Pasalis. Condo sales decreased by 29 percent on the month.

That is a big drop, not only in comparison with the outrageous pace of last year, but also compared with historical standards, Pasalis told HuffPost Canada. He expects prices to be about 12 percent lower than a year ago, with a sharper drop of 17 percent in the price of low-rise housing.

Though he notices that much of that price decline occurred last year, after the county had introduced the Fair Housing Plan that included a tax of 15 percent foreign buyers. Prices have largely stabilized in recent months.

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Canada's largest housing market is now faced with many headwinds, including rising mortgage rates and stricter new loan rules that require large borrowers to "stress test" to ensure that they can pay higher rates.

The experts said those new rules would most affect the most expensive housing markets in Canada – namely Toronto and Vancouver. In a recent report the National Bank of Canada predicted that both cities would see falling home prices this year.

Look: $ 749,000 Toronto house looks like something out of your nightmares

But in Toronto "we're a kind of bubble that made prices unaffordable for people," said Pasalis, referring to the madness early last year, when house prices rose by about 30 percent and bidding wars became the norm, which led at least one big bank to declare that Toronto's housing market was in a complete bubble . Prices must come to rest, so that people can afford to buy houses again, claims Pasalis.

"Detached homes are the most desirable type of home and they are currently the most over-ordered, not because people do not want them, but because people can not afford them," he said. HuffPost Canada:

Some more aggressive buyers smell blood in the water and stop buying it to get a better price during a few months, Pasalis said.

"They try to keep friend from game market … to scare some sellers out" when the bad headlines land, "he said.

He expects the market to" slow "in the near future remain, with little chance of a significant turnaround before this time next year.

"It will take some time before this market has come to rest," he said.

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