There is never a guarantee that prices will always go up. As a new immigrant you will have problems getting a mortgage due to your lack of credit history. You may have access to alternate financing where you put down a larger deposit and have a higher interest rate mortgage. You may be able to buy in cash. It really depends on your circumstances. I would recommend you rent for a while and figure out where you would like to buy once you get used to the city, get a job, etc.
Buying New house in Toronto (price decline trend)
- Thread starter raheelpk
- Start date
Thanks for the feedback, of course you would have to spend some time and explore different cities/neighbourhoods and whatnot but my question is a little far-sighted. I mean having this intention and not waiting too long could pay dividends since the price levels are still low and decreasing. Or have they already started increasing and my research is out of date?
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I wouldn't say prices are low or decreasing in Toronto but there are definitely more expensive cities in the world. Given that new immigrants usually don't have a credit history and have to pursue alternate financing where you have to put down a substantial deposit and pay a high monthly interest rate any potential savings if the market does go up may be offset by the higher interest rate. I'm not sure if you are looking to finance oryou are lucky enough to be able to buy with cash. I think financing will be a big obstacle if you are not paying in cash. The market it currently in a bit of a weird place after 15 years of very generous returns.
In the GTA, prices are still falling and will continue to do so for some time. Transaction volumes have cratered and sellers are desperately hoping for a recovery in September, which will not materialize. We are well past the peak, and now prices will continued to fall for the next couple of years before stabilizing again.
Average Toronto home price drops $173,000 since April 2017 and the number of sales in July also fell 40.4 per cent compared to July lasl year
https://www.thestar.com/business/re...ome-prices-fall-for-third-month-in-a-row.html
'There’s nothing positive’: Toronto home prices plunge as buyers retreat
https://www.theglobeandmail.com/rea...as-sellers-move-to-sidelines/article35870812/
TREB Report (Toronto Real Estate Board) - Prices and sale volume continue to decline
http://www.trebhome.com/market_news/market_watch/2017/mw1707.pdf
https://www.thestar.com/business/re...ome-prices-fall-for-third-month-in-a-row.html
'There’s nothing positive’: Toronto home prices plunge as buyers retreat
https://www.theglobeandmail.com/rea...as-sellers-move-to-sidelines/article35870812/
TREB Report (Toronto Real Estate Board) - Prices and sale volume continue to decline
http://www.trebhome.com/market_news/market_watch/2017/mw1707.pdf
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Considering the cooling measures introduced by the government to restrain the real estate sector, as new immigrant I don't think it is time to rush into buying a new house. I would rather rent for now, take a wait and see attitude and continue to save up a larger down payment while building my credit.
I see the logic in your approach but at the end of the day, it's a trade--off. You can wait and see, at which point prices will either continue to fall or rise. If they rise and you already bought a house then you will be overjoyed, if they fall then you will be disappointed because you could have waited longer and gotten a better price. It's all about the individual's appetite for risk.
Declining house prices in toronto
https://www.lowestrates.ca/blog/hom...ronto-buyers-are-getting-caught-mortgage-trap
https://www.lowestrates.ca/blog/hom...ronto-buyers-are-getting-caught-mortgage-trap
Why the ‘worst may be yet to come’ for Toronto housing
http://www.bnn.ca/why-the-worst-may-be-yet-to-come-for-toronto-housing-1.870952
Toronto and these other major housing markets are in a risky bubble, UBS says
https://www.cnbc.com/2017/09/28/tor...g-markets-are-in-a-risky-bubble-ubs-says.html
http://www.bnn.ca/why-the-worst-may-be-yet-to-come-for-toronto-housing-1.870952
Toronto and these other major housing markets are in a risky bubble, UBS says
https://www.cnbc.com/2017/09/28/tor...g-markets-are-in-a-risky-bubble-ubs-says.html
Prices have somewhat softened in areas outside of the downtown core. Many places in the downtown core are still going into multiple offers and selling over asking. I'm in the city and there's still not enough inventory here. Still seeing houses sell for over offering and many bully offers. Condos are still very hot.
Best option is to work with a good real estate agent familiar with the area you're interested in. Here's also a good real estate blog that can give you info about current conditions:
http://torontorealtyblog.com/
Prices are definitely down across the board. Some areas (e.g., suburbs, high immigrant neighborhoods, etc.) have been hit much harder than others, with price drops of 30% from last year. Regardless, market activity is down right across the board and houses are taking MUCH longer to move.
I expect an interest rate hike next month from BoC, and at least a couple more in the next 9 months. With half of the outstanding mortgages up for renewal this year, this will put a lot of extra financial pressure on people who have large mortgages. As a result, I think that the worst is yet to come, and 2019 will present a lot of interesting buying opportunities in Toronto.