Canada's hottest housing markets are "ripe for a correction," a major bank is cautioning.
In its latest quarterly economic forecast, TD Bank said that while housing investment currently remains strong, "the party will come to an end."
You are now in the grips of looking for a new home for any number of reasons. You have been transferred, you are expecting your first child or you are blending new families together.
So you will find yourself facing the eternal question of what to do first: Buy the new home, or sell the old one? This is a very tricky juggling of two mutually exclusive and independent events.
It's easy to forget how long the housing boom in Vancouver and Toronto has been building. The answer is: a generation. Except for a short freeze-up after Lehman Brothers collapsed, it’s pretty much been up for 20 years. Even the brutal Toronto real estate collapse of the early 1990s has been long forgotten.
Canada should consider further housing-market restrictions to avoid a crash, the Organisation for Economic Cooperation and Development said, adding another voice to the recent chorus of those warning rapid price gains may be unsustainable.
Roughly half a million first-time homebuyers are living close to the margin and could be in a dire financial situation when interest rates go higher. However, mortgage industry veteran Will Dunning argues threats of higher interest rates have been echoed since 2008 -- and rather than going higher, they have actually fallen.
Canada's hottest real estate markets know no boundaries. Amidst the debates and finger-pointing, potential buyers grapple with ever-increasing home prices and this has pushed some first-time homebuyers in Toronto and Vancouver to move away from the city core and into the suburbs, sparking "crazy" bidding wars.
Demand for housing far outstrips supply, and more lowrise homes are needed. Supply of houses in the GTA is not able to keep pace with demand due to government intensification policies and a lack of serviced developable land.
People view buying a home as a milestone. It's a time to offer hearty congratulations, to give gifts and hold housewarming parties. Millennials, however, see a home as more of an investment than a turning point in their lives. And according to the Bank of Montreal (BMO), they're putting off the decision to buy until they feel it's the right time.
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