Those of us paying attention will remember Economist David Madani warning Mortgage brokers toronto and the rest of us that a 25% correction was looming in the Toronto real estate market. Although that hasn’t materialized as yet, everyone is keeping a close eye on what’s being touted as the one of the most important spring markets in the last twenty years for sales and Toronto mortgage rates by proxy.
There are still pundits, and Madani is among them, who believe that the longest housing boom in history can’t help but come off the rails. Low interest rates that were put in place to help us over the 2008 crisis and Toronto’s bulging condo sector are the gasoline being poured on the fire, according to Madani in a recent Toronto Star article. He tells the Star’s Susan Pigg that the spring will be critical and any increases in listings coupled with continued falling sales can’t help but affect prices.
There are other interesting trends emerging that could have some effect as the weather warms up and first and foremost is the emergence of the bidding war in some Toronto neighbourhoods. As well, Pigg writes about some of the other factors that need to be taken into account before a price correction can be assured and demand is one of those considerations.
The low interest rates that feed enticing Toronto mortgage rates have ignited the demand for low rise housing and that doesn’t seem to be in danger of dropping off or slowing down any time soon.
There does seem to be one thing that may drive a good spring and that’s the low interest rates we’ve enjoyed for a few years now. Although there have been dire warnings about the consequences of using too much credit, these low numbers have a part in propelling new housing starts to the betterment of the economy as a whole.
