Many of the changes made last year will affect 2018's real estate market. Will interest rates rise again? What affects will new policies have on the market? Here are a few things that I see trending over 2018.
1) Borrowing power
It's not as easy being a mortgage borrower these days. Tighter qualifications leads to less purchasing power, and many home buyers are seeking alternatives to the "A" lending market. It should be expected that the Bank of Canada hikes rates up again over the course of the year. BoC will be monitoring economy’s sensitivity to interest rates, the evolution of economic capacity and the dynamics of both wage growth and inflation. I'm happy to connect you to a mortgage professional to discuss your options.
2) Condos: back by popular demand one housing type that was in consistent demand throughout 2017 was the condo market.
Why are buyers increasingly choosing condo living, rather than buying detached? Affordability is the main reason, as traditional houses simply remain too expensive for the average buyer. So first-time buyers and baby boomers alike have piled into the high-rise market, leading to steady price growth.
Also, condos make great investment properties. Especially because Toronto has an extremely low vacancy rate for rentals.
3) Family friendly developments
Many families that wish to live in urban settings call condos home. The City and developers are increasing square footage and number of bedrooms, to accommodate growing families. Kid-friendly amenities like playrooms, and daycare spaces, not to mention on site parks, lobby stroller space, and even larger hallways are being incorporated to make room for this growing population.
Real estate will get more exciting as the year goes on, and it's so great to see Toronto being featured as a world class city. I'd love to hear your thoughts on what you think. Let's chat:)