In our last blog we shared our thoughts on the real estate situation in Great Toronto Area. Here is what happened since posting of our latest article:
– The real estate prices has stabilized in September – October timeframe and actually started recovering in some areas;
– Condo prices increased – due to the fact the houses became not affordable to many buyers, they decided to switch their focus to condo units that are less expensive;
– In late fall the government introduced Bill 20 – new mortgage rules starting from January 01. The major change is that now every uninsured mortgage transaction needs to be qualified by either Bank of Canada rate of by negotiated mortgage rate + 2%, whichever is greater. This change led to a spike in the amount of people trying to qualify for a mortgage before new rules come into effect;
– Bank of Canada had two increases in interest rates in second half of 2017. On December 06 it decided to hold the rate unchanged but more increases are expected in 2018.
It is absolutely not clear what will happen to the real estate market in 2018. Likely, we will see some pricing instability in GTA but it is very hard to predict the impact of all changes.
We, at CFP Group like working in markets that are stable and in a growth mode. Therefore, we switched our attention to selected areas in USA. One of such areas is Phoenix where we have a couple of multi-unit projects under construction. One such a project is being built and we expect to start its occupancy shortly. The second project started in the beginning of December and is expected to be completed in late 2018.
If you want to learn more about our current and upcoming projects, please visit www.cfpgroup.ca and be in touch with us.
We wish all of you Happy Holidays and an amazing year 2018!