Well, officially Spring is almost here, although you wouldn't know it outside. It's a brisk -18C as I write this.
With winter so far being a steady diet of warm, cold, warmer, colder, our Toronto Real Estate Market is riding the same path it seems.
Typcially, early January is a very quiet time indeed for real estate activity, but it was soon followed by a bit of a surge in sales late into the month. Early February was again a little quieter, and it appears now, as I write (March 2nd) the Spring Market has definitely Sprung. While this is a little atypical so early in March, the Federal Finance Minister, Jim Flaherty's mortgage changes for 2011 have seen a surge in listings and hungry buyers out to purchase a home before the new rules come into affect March 18, 2011. Which are:
1. The maximum amortization period for a government-insured mortgage was lowered from 35 to 30 years.
2. The upper limit that Canadians can borrow against their home equity was lowered from 90 per cent to 85 per cent.3. Government insurance backing on home equity lines of credit, or HELOCs, has been removed.
While these rules make sense and force Canadians to tighten their belts a bit, it does mean higher mortgage payments over a shorter amortization period (approx $96/mth more) and that's enough to get buyers out in the cold to shop.
However, the confidence in our economy seems to be bourgeoning and it's unlikely the market will come to a standstill after March 18th.
It looks like a healthy, steady market is here to stay; for a while at least. There is no plan to increase the low interest rates we've been enjoying, just yet
so if you're a seller or a buyer, this could be a fruitful time for you. Enjoy the experience and (the soon to come we hope) warmer weather!
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