Toronto Real Estate Industry Faced With Uncertainty
The central bank of Toronto expresses concerns about the current real estate booming prices alerting buyers and investors not to fully rely on the current situation. The bank went on to state that the rapid increase in home prices is not a stable situation and things can take a different turn at any given time. No market situation is constant therefore, buyers should always expect changes.
After releasing the bank’s semi-annual financial statement on Thursday, a representative of the bank stated that “prospective investors and their agents should not project the current real estate status into the coming years while deciding on business decisions.”
Buyers, however, should not let this market boom cloud their judgment into making hasty decisions that they might end up regretting. In recent times, the real estate industry have seen a lot of homebuyers put in a lot of money when negotiating house prices while the rate at which buyers demand properties does not tally with the rate at which supply is done.
It has become a worrying situation for bankers and investors alike as the future of Toronto and Vancouver markets remain uncertain.
The concerns were further heightened when the Finance Minister Bill Morneau discussed that talks are underway to look into the current market situation to be able to know if Canadians will be able to buy properties at a reasonable price when other financial factors change.
Vancouver and Toronto face the chance of having instant changes occur while buyers are still faced with huge debts to pay.
The statement showed that the house prices in Vancouver and Toronto were much higher in May than in previous years.
As of now, no solution has been found to curb the over booming markets of Toronto and Vancouver but steps will definitely be taken to help reduce the mortgage rules.
The Canadian Real Estate Association, however, suggested that the only possible solution is to put policies in place to help secure the future of the markets and buyers as well.
In his own words, the association’s chief economist Gregory Klump said that”having evidence-based policies and policy measures is the way to go.”
“There are lots of solutions out there but if they were drops of water we will all be drowning in them at this point,” he quickly added.
“Good news is expected to be received by the end of the year since the government is involved in trying to find measures to cool down the situation, “said Klump
