The Toronto real estate market started off the year at a slow pace as buyers contend with some of the highest borrowing costs they’ve seen in 15 years.

 

Just 3,100 homes were sold in Toronto last month, down from 5,594 during the same time last year, according to the latest TRREB report. This marks the lowest number of sales since April 2020 when the country went into its first COVID lockdown. 


 

With so little action in Toronto’s market in January, the average price for a home dropped 16.4% from $1,242,707 to $1,038,668 year-over-year. The fall has largely been attributed to rising interest rates, which tend to change with mortgage rates.

 

“Home prices declined over the past year as homebuyers sought to mitigate the impact of substantially higher borrowing costs,” said Jason Mercer, the real estate board’s chief market analyst.

 

January is often one of the slowest months for the real estate market, as many people wait until spring to do deals. And with the Bank of Canada hiking the interest rate eight times in the last year alone, potential sellers have left their homes off the market, while buyers have sat waiting for prices to hit their bottom.

 

Industry experts believe sidelined buyers and sellers will soon be ready to make their long-awaited moves and note that many have already.

 

Stay tuned to see how the market changes as we get closer to spring. As always, feel free to contact me if you have any questions.

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Toronto is full of residential buildings that have some form of heritage value. These historic homes provide a unique opportunity for homeowners to live in a piece of history. If you're considering buying a historic home, here are a few things you should know.

 

You can find historic buildings anywhere, though there are entire neighbourhoods that are designated “historic”. Historic areas can be a competitive market, so you will want to ensure your finances are in order before you begin looking.

 

The benefit of owning a historic home is the ability to own a unique piece of history. If you buy a home in a historic neighbourhood, you will be joining a community of homeowners aiming to preserve the character and history of the district, even if it costs them more money and limit certain property rights.

 

Before buying a historic home there are a few things to consider. It can be hard work, since they are older and often built before modern construction techniques. Regular maintenance will be necessary, and you will spend a lot of free time on upkeep.

 

You will also pay more for a property located in historic districts. Even if you find a home for a great price, you will likely spend more on renovations and maintenance.

 

Owning a historic home is not for everyone, but it can bring much satisfaction if you are willing to do the work. 

 

Contact me if you have any questions, or if you are looking to buy or sell a historic home!

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Purchasing a home takes a lot of work and effort. One of the first steps to buying a home is getting approved for a mortgage, which includes pre-qualification and pre-approval. But what's the difference between these two terms?

 

Getting Pre-Qualified

 

Getting pre-qualified for a mortgage requires a potential homebuyer to provide a general overview of their finances to the lender, including income, assets, and debt. A credit check is not required at this point. The financial information is then reviewed by the lender and an estimate of the mortgage is given. This amount is subject to change upon pre-approval.

 

Pre-qualification can often be done online or over the phone at no cost. It takes up to 3 days to get a pre-qualification letter. This is a great time to speak with your lender about your specific mortgage needs and gain insights into the various options available. It also gives you an idea of the size of the mortgage that you are eligible for.

 

Getting Pre-Approval

 

Getting pre-approved is the next step in the mortgage process. While pre-qualification indicates a homebuyer’s ability to obtain a mortgage, pre-approval gives a more definitive picture. 

 

During this process, the homeowner completes an official application and provides the lender with all the necessary documentation for an extensive credit check. Once they have reviewed all the documentation, the lender will offer a mortgage pre-approval for up to a specific amount. 

 

While pre-qualification and pre-approval are sometimes used interchangeably, they are different from each other, and both should be completed in the mortgage application process. If you have any questions, feel free to reach out.

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Wall Of Fame February 2023

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