The COVID-19 pandemic has caused a spike in real estate markets across Canada.
Getting a mortgage in Toronto has become increasingly complicated with the rise in prices within the city. Fortunately, Toronto’s real estate market seems to be slowing down finally.
This is a promising time for buyers, as prices should begin dropping slowly but surely.
At Northwood Mortgage, we partner with families across the GTA. If your family is looking for a home, Northwood Mortgage can help you obtain a mortgage in Toronto, and with the cooling of the market, now’s the time to do so.
As a leading mortgage broker in Canada, we can help Torontonians navigate the latest changes in the housing market. Here’s what you should know about the slowing market as a buyer.
How is the slow down calculated?
A slowing housing market isn’t always written in the sky or in the newspaper. Signs come slowly. Where prices and interest are still evident, buyers might find it difficult to believe that the market is finally turning in their favour.
The first sign of a slowing housing market is a reduction in buyers. When fewer buyers are searching for new properties, the market slows naturally.
This lack of buyers could relate to the rise in prices and reduction in property availability in the city. It could also relate to the slowing pandemic. Whatever the cause, though, buyers that remain are in luck.
Too early to tell?
Financial and real estate experts are seeing the micro-signs of a gradual slowing in our housing market. However, it’s still too early to know where the fall will land or when it will become obvious to buyers.
One of the major issues with a slowing market, especially in a big city like Toronto, is that buyers can’t see how many times a home is being viewed.
Only sellers are privy to this information. For a buyer, it might seem like a property is getting lots of action, and when sellers increase the price, it appears like a sign that the market is rising again.
This isn’t so.
If a property gets few offers or offers fall through, sellers often increase the price to keep the home looking desirable. To a buyer, it does just this: making it seem like the property is seeing such success that it can afford to be priced higher.
Waiting for the Right Moment
While it might seem like waiting for the right moment to buy is the best action plan, it could be the right time to buy now.
Mortgage brokers are seeing a subtle decline in borrowers. This makes it the perfect time to get your foot in the door as a buyer and obtain a good mortgage offer before hitting the market.
Contact Northwood Mortgage
Interested in learning more about getting a mortgage in Toronto during this real estate slowdown? We can help.
Contact Northwood Mortgage today and find out your odds in the market. Our professional brokers can help you navigate the right mortgage option at the best rate. Call us at 1-416-969-8130 or visit us online to get in touch.