‘Too many buyers, not enough homes’: Climbing year-end prices suggest a hot spring housing market, says Royal LePage

Some of the pandemic exuberance is already fading but demand and short supply are expected to further push up prices this year.

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wezel0823
wezel0823
31 · 4 days ago · Reddit

Company that sells homes says homes will be more expensive, more news at 11.

fakebasil
fakebasil
15 · 4 days ago · Reddit

This sub has just turned in to the same negative, dreadful real estate articles every day calling out the obvious. Can we limit them?

fabrar
fabrar
15 · 4 days ago · Reddit

Inventory definitely sucks right now. I'm in the market for a detached and am having trouble actually finding a place, let alone get into the dreaded buying process and inevitable bidding war.

Morlu
Morlu
7 · 4 days ago · Reddit

I’d sell my detached in Toronto if rent wasn’t 2500-3k a month for something decent. My $1100 mortgage is a steal in comparison.

morenewsat11
morenewsat11
7 · 4 days ago · Reddit

paywall, available via PressReader with Toronto Public Library card

excerpts:

Royal LePage is forecasting a 10.5 per cent increase in home prices nationally for 2022 — 11 per cent for the Toronto area.

Soper says an anticipated rise in interest rates this year won’t be enough to deflate the market.

“We’re moving from almost free money to very low interest rates. Even a material increase in the cost of borrowing will still leave us in very low interest rate territory,” he said.

With the introduction of the mortgage stress test since the last expansionary period of 2016-2017, consumers have a buffer zone, as the mortgage stress test requires borrows qualify at a higher rate than the loan they actually need to pay.

“Somewhere in the range of 90 per cent of the new mortgages written last year, people had to qualify at the full 5.25 per cent that the Bank of Canada specifies, which is more than double the best rates you can get. So we’re looking at ... a large group of buyers who have shown themselves to be able to handle these increases,” he said.

When the market corrects — Soper expects that in the second half of this year or next year — he says the change will be muted by the formation of new households by newcomers and adults moving out of their parents’ homes the housing shortage and the reality that people will still need a place to live, whether they rent or buy.

The home price survey released Friday, is based on proprietary data.

It shows the GTA median home price rose 17.1 per cent year over year in the fourth quarter to about $1.12 million. The percentage increase matches the national average but the median Canadian price is a much lower $799,000.

The aggregate home price, including all houses and condos, was less dramatic in the city of Toronto than the surrounding communities. While Toronto homes rose 8.1 per cent annually to $1.4 million in the fourth quarter, Markham, Oakville, Oshawa and Richmond Hill all saw year-over-year median price increases closer to 30 per cent.

love_stonks1
love_stonks1
5 · 4 days ago · Reddit

GTA inventory is at 50% of what it was 1 month ago and is not showing any sign of recovery based on the number of new listings going up. Naturally that translates to huge bidding wars with 5-10 people (at minimum) going after anything half decent and resulting prices ending up 20-40% over list.