Category Archives: real-estate

I write on issues related to housing market to inform people about current housing market!

Housing Bubble and Buying a Property in Canada

Posted on by
Reply 

Before you buy a house in Canada in general and Greater Toronto Area (GTA) in particular, you need to know about a housing bubble. The reason I keep saying do not just jump into the market yet is because the real estate practitioners are worried whether the bubble is going to burst anytime soon. Remember housing price was at the peak in 2022 and the price was checked with the interest rate rise. It is not that the bubble is burst yet, it is just controlled. It is important to understand it. Let’s talk about what it is. 

A housing bubble happens when housing prices skyrocket, and real estate values become so unsustainably high that eventually the bubble bursts. Housing prices are disconnected from the “intrinsic property values.” Intrinsic property values are prices based on economic factors like income levels, rental costs, and other things that traditionally influence property values. Skyrocketing housing bubble prices occur when several things happen at once. Some of the contributing factors are: Speculation, Limited Housing, Interest Rates, Mortgage Debts, and Increased Development.

Don’t Be Fooled by Your Real Estate Agent

Posted on by
Reply 
Look at the current real estate market!  Greater Toronto Area has 23,161 Homes For Sale. According to Toronto Regional Real Estate Board, more than eight thousand one hundred condos were vacant in Toronto in May, 2024. This number is increasing every day, not decreasing. It is because most of the condos in Toronto are/were owned by the investors. Because of interest rate and price reductions, those investors like to exit from their investment. Looks like buyers are not interested to jump into the real estate market just yet! They want to wait until other 2 to 3 rate cuts. As a result, the house price is not going to climb just yet. If your real estate agent is telling to buy a house right now otherwise the house price will skyrocket very soon, it is not true! Do not believe him or her!

Toronto Condominium Market

Posted on by
Reply 
I liked to go back to what I said about condominium and freehold prices recently. Yes, the price of condo is going low because of oversupply in the market. The price of freehold is going up at least in the prime locations in Toronto. Yes, it is also true that if the freehold price keeps climbing, people will start thinking about a condominium because of condo price and their own budget. It is very possible soon. If you think let me go ahead buy a condo and live in it for now, please do not buy unless you plan to live in it at least for 5 years. There is a possibility of price going even lower in the days to come. There is so much supply of both freehold and condominium in the market right now. Maybe it is because of summer. There are more listings in the summer compared to winter and buyers have more choices in terms of prices and everything else. You even heard from me that it is not a good time to sell the house. But it is also true that real estate is not going to improve in any time soon. The conclusion is do not sell your property unless it is absolutely necessary. No one knows what you need to do better than you yourself!

Cash Back Offers and Reasonable Prices and Smooth Transitions

Posted on by
Reply 
I often hear about cashback and sharing commission in the market. the buyers and sellers are always running after those things! Even if a real estate agent is not knowledgeable enough about the market, property and other related issues in the real estate market, they do not care all those things. buyers and sellers only care about those things they get from their agent. do not run after cashback and other discount your real estate agent provides you with! instead care about whether he or she shows you good property or not! good property and reasonable prices are way better than those cashbacks and giving his or her 1 or 1.5 commission back!

Bank of Canada Interest Cuts and Expert Views on Canadian Real Estate Market

Posted on by
Reply 
How is real estate market after the latest interest cut by the bank of Canada? What do real estate experts say about the interest cut and its aftermath? We find mixed feelings when we listen to those experts in the field. According to The Globe and Mail article, Royal LePage president predicts 'real lift’ in home sales after Bank of Canada cut the interest rate. However, John Pasalis, one of the real estate practitioner and researcher does not think so. He does not think so since there will be any sales increase until next year because right now the interest rate is very high. On the other hand, John Flynn, another real estate practitioner and researcher says that nothing is going to happen after the interest rate cut as whatever had to happen has already happened before the rate cut. Yes, there is a gradual improvement for freeholds right now. It does not mean that the price will drastically go up after the rate cut for the freehold. Condo market is down right now. The sellers of the vacant condo rush to sale and you may get for even low price. And, the buyers are reluctant to buy the rented condo for various reasons. Stay informed and use your rational before you rush to invest in real estate after listening to people.

Posted on by
Reply

Easing of Inflation and Canadian Housing Market

“If inflation continues to ease, and our confidence that inflation is headed sustainably to the 2-per-cent target continues to increase, it is reasonable to expect further cuts to our policy interest rate. But we are taking our interest rate decisions one meeting at a time.” Mr. Macklem said. The Bank of Canada is the first G7 central bank to start easing monetary policy. The European Central Bank is expected to follow suit on Thursday, while the U.S. Federal Reserve, which is dealing with a stronger economy and more stubborn inflation, is expected to hold off rate cuts until later in the year. 

The next meeting is on July 24, six weeks from now. This interest rate cut is like “finally, the interest rate is not going to increase.” Nothing more than that.  Looks like this rate cut is not going to bring any momentum in a near future. Since the current inventory dictates price of a house for at least 90 days, there is more than enough inventory in the GTA housing market. Based on the current listing, free hold market may go up whereas condo market will stay same or go down until the current inventory is cleared up since there is too much inventory in the condo market.

It is a right time to invest on the real estate?

Posted on by
Reply

if you are thinking about investing on a property, do not waste time by thinking whether it is a right time to do so. There is never a bad time for the investment on real estate. You may feel that the market is very hot now and you think that you will buy your desired property when the market cools down. It is a serious mistake and you will regret it later. Act now! Do not wait.

About Buying and Selling Homes in Ontario

Posted on by
Reply

Welcome to Buying and Selling Homes in Ontario! The purpose of this site is to help you find the property of your choice. This site is dedicated to provide you with information related to real estate in Ontario in general and GTA in particular. Please keep visiting this site for real estate market in general and property investment opportunities in GTA!

Email: buyingandsellinghomesingta@gmail.com
Contact: WhatsApp +1 3153950853