Photo: James Bombales
After a summer of slumping prices, the GTA housing market seems to have balanced out, as it continues to adjust to the effects of the province’s Fair Housing Plan.
According to the Canadian Real Estate Association (CREA), national home sales rose 0.9 per cent in October, a modest increase that remains well below the record levels set in March.
“The GTA has become a far more balanced market than it was a year ago,” CREA chief economist Gregory Klump tells BuzzBuzzNews. “What we have to look at is the possible effects of the new mortgage stress test. I anticipate an increase of sales in the fourth quarter, as buyers try to buy before the rules come into effect, followed by a slowing of sales when they do come into effect in the new year.”
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Last month, a new mortgage stress test was announced for January 1. Uninsured mortgage borrowers will be required to qualify against the Bank of Canada’s five-year benchmark rate, or at their contract mortgage rate plus and additional 2 per cent.
According to North American RE/MAX Integra CEO Pamela Alexander, while the new rules may affect the market in the new year, they’ve had relatively little impact on sales so far.
“We’re not seeing a huge spike of people rushing to buy before the rules come into effect” she tells BuzzBuzzNews. “I think what we’re seeing is a slight rise in sales, as sellers return to the market, but overall it’s a balanced market with steady growth.”
Here are 10 facts that show how the GTA’s housing market has balanced out in the last month: