Why are Sales Lower in Toronto in 2018?

31 May 2018
Why are Sales Lower in 2018

Why are sales so much lower in Toronto in 2018? Even much lower than the ever optimistic Jamie Johnston predicted?

 The challenge is getting first time buyers into the market. First time buyers are the start of the chain. They create move up buyers, and in the end, a more robust real estate market. The focus for politicians seems to be on affordability and building low-cost housing, but that solution is a long way off.

My suggestion? Change the qualifying rates for first-time buyers. Let them qualify at the 5 year fixed rate, not some artificial fixed posted rate set by the banks that no one borrows at. The difference in these two rates would allow a buyer to qualify for a mortgage of $80,000 more.

Unless you think we are leading people into credit jail? Just think, if a buyer puts 5% down after the 5 year fixed rate period is up, the equity in their property will be 20%. That's if the property never increases by one dime.  And after 5 years, I would assume the buyers salary has also gone up considerably too.

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