Unfavorable Signs Are Mounting Up In The Real Estate Market

With the ever growing economy status of Toronto and Vancouver, there seems to be no sign of it slowing down anytime in the near future but quite recently, things are looking stable in the housing market.

During the course of the month, remarks were made by the Canadian Real Estate Association about the current situation of the market. The sales of houses during March and April had come to a standstill in both cities.

Urgent measures are been put in place to curb any risk associated with the real estate investments. The Organization for Economic Co-operation and Development has made this request to both cities to control the crisis.

The OECD, after going through the economic status, made a remark that the increase in the rate of houses was due to the fact that minimum profits have been on the increase and this is not an appealing situation.

Emphasis should be given towards the various guiding principles in the Canadian housing which will be the backbone in increasing profits.

Recent mortgage regulations were made to enable lenders to make down payments of 10 percent on any home price that is over $500,000 up to $1million. The news was made known by the Finance Minister Bill Morneau.

Up until July the steps towards fostering better investment deals will not be in use owing to the fact that investors can still buy houses earlier in the year and then pay the mortgage in 2 to 3 months time.

In respect to the current situation of Toronto and Vancouver, many other organizations are affected by the housing markets situation.

A drastic change has been made to the lending of mortgage in both cities, expressing how tense they are about the level of debt Canada is in.

“We just took our foot off the gas the last couple of quarters,” he said.