Are you considering a move in the Canadian real estate market? If so, take a closer look at Toronto. Recent trends suggest that Toronto’s home prices are poised to outpace Vancouver, marking a significant shift in the country’s real estate landscape.  As you navigate these changing market dynamics, the Cashin Mortgages team is here to help. Our expertise and industry relationships will deliver the very best financing, greater savings, and better mortgage terms for you and your family. Let’s look deeper into the factors driving this trend and what it means for both current homeowners and aspiring ones. Regardless of where you stand in the market, the Cashin Mortgages team is here to provide expert guidance and support every step of the way.

Toronto’s Housing Market Surge

For years, Vancouver has held the spotlight as one of Canada’s hottest real estate markets, with sky-high prices that often seemed to defy gravity. However, recent data suggests that Toronto may be poised to outpace its Western counterpart. Several factors contribute to this shift, including Toronto’s robust economy, population growth, and increasing demand for housing. As businesses flock to the city, bringing job opportunities and economic prosperity, the demand for housing continues to soar. This surge in demand, coupled with limited supply, has been a driving force behind the steady rise in Toronto home prices.

Toronto, known for its vibrant neighbourhoods, diverse culture, and strong job market, has long been a popular choice for homebuyers. In recent years, the city’s housing market has experienced remarkable growth, driven by factors such as population growth, low-interest rates, and limited housing supply. According to the Toronto Regional Real Estate Board (TRREB), the average selling price of a home in Toronto hit $1,067,516 in January 2024, a 27.7% increase from the previous year.

Vancouver’s Cooling Market

In contrast, Vancouver has experienced a cooling of its once red-hot real estate market. Measures implemented to curb speculation and foreign investment, such as the foreign buyers’ tax and stricter mortgage regulations, have had a noticeable impact. While these measures aimed to make housing more accessible to local buyers, they also contributed to a slowdown in the market. Additionally, Vancouver’s affordability challenges have prompted some potential buyers to look elsewhere, including Toronto, where prices, while rising, still appear more attainable.

Factors Driving Toronto’s Market Growth

Several key factors are contributing to Toronto’s housing market surge. One major driver is the city’s robust economy, which has created a high demand for housing. Toronto’s strong job market, fuelled by industries such as technology, finance, and healthcare, continues to attract professionals seeking employment opportunities.

Another factor is low-interest rates, which have made borrowing more affordable for homebuyers. The Bank of Canada has kept interest rates low to stimulate economic growth, leading to increased demand for mortgages.

Additionally, Toronto’s limited housing supply has put upward pressure on prices. The city faces challenges such as land constraints and strict development regulations, leading to a shortage of available homes. This imbalance between supply and demand has contributed to the rapid appreciation of home prices in the city.

Comparing Toronto to Vancouver

While Toronto’s housing market is booming, Vancouver, once the hottest real estate market in Canada, is experiencing a slowdown. Vancouver’s housing market has been cooling since the introduction of the foreign buyers’ tax and other measures aimed at curbing speculation. The average home price in Vancouver was $1,264,196 in January 2024, a 3.7% decrease from the previous year.

The shift in market dynamics between Toronto and Vancouver is significant. For years, Vancouver led the country in terms of home price growth, but now Toronto is poised to take the lead. This change reflects the evolving nature of Canada’s real estate market and highlights the importance of staying informed and adaptable as a homebuyer or investor.

Implications for Homeowners

For homeowners in Toronto, the prospect of their property values continuing to climb may be welcomed news. A surge in home equity can provide financial security and open up opportunities for leveraging that equity for various purposes, such as renovations or investments. However, for those looking to enter the market or upgrade to a larger home, rising prices present challenges. Affordability becomes an increasingly pressing concern, especially for first-time buyers or those with modest incomes. Navigating these challenges requires careful financial planning and, most importantly, access to the right mortgage solutions. That’s where Cashin Mortgages comes in.

How Cashin Mortgages Can Help

Regardless of your situation, the Cashin Mortgages team is ready to help you navigate Toronto’s dynamic real estate market. Our expert mortgage brokers can provide personalized advice and access to a wide range of mortgage products to suit your needs. Whether you’re a first-time homebuyer or looking to refinance your existing mortgage, we can help you secure the best financing options available.

Final Thoughts

As Toronto’s housing market continues to outpace Vancouver’s, homebuyers and investors need to stay informed and work with trusted professionals. The Cashin Mortgages team is committed to providing you with the expertise and support you need to make informed decisions and secure the best mortgage terms. Contact us today to learn more about how we can help you achieve your real estate goals in Toronto.

Sources

https://www.cbc.ca/news/canada/toronto/toronto-housing-prices-surpass-van-1.7171761

https://www.bankofcanada.ca/

https://trreb.ca/

Inflation, that ever-present economic indicator, is a hot topic among consumers. Recent data suggests a perceived slowdown in inflation, yet expectations for the near term remain relatively unchanged. Why the discrepancy? Sticky inflation expectations, it seems, are influenced by a mix of factors—from uncertain near-term inflation trajectories to persistent projections for interest rates and rent costs. In our latest quarterly analysis, we delve into the intricacies of consumer sentiment surrounding inflation. Despite perceptions of a temporary reprieve, long-term inflation expectations are on the rise. Domestic factors, such as government spending and housing costs, are viewed as enduring challenges, prolonging the inflation puzzle. Join Cashin Mortgages as we dissect the latest trends, implications, and insights driving consumer inflation sentiment in our quarterly report.

Canadian Perception vs. Expectation: Inflation Trends

Canadians believe that inflation has decreased compared to the previous quarter. However, their expectations for near-term inflation have remained largely unchanged. Traditionally, changes in perceptions of inflation affect consumers’ expectations for near-term inflation, but this relationship has weakened in recent quarters.

As the second quarter of 2024 unfolds, borrowers in Ontario, Canada, are eyeing the mortgage market with keen interest. With fluctuating economic conditions, evolving regulations, and global events impacting the financial landscape, understanding the current mortgage rates and their potential trajectory is crucial for both potential homebuyers and current homeowners looking to refinance. In this analysis, we dive into the factors influencing mortgage rates in Q2 2024 and what borrowers can expect in the coming months.

Current Market Trends

Mortgage interest rates have barely stayed below 7% so far in 2024. Reports predict that the average 30-year fixed mortgage rate for the week ending March 28 was 6.79%. The majority of real estate analysts predict that mortgage rates will decline during 2024 while still being high, particularly once the Federal Reserve starts its anticipated rate reduction program. However, it is unclear whether reduced rates would result in a significant change in the affordability of homes.

Factors Influencing Mortgage Rates

Several factors influence mortgage rates in Q2 2024, including:

Economic Indicators

Key economic indicators such as GDP growth, employment figures, and inflation trends will continue to influence mortgage rates in Q2. Improving economic conditions may lead to upward pressure on rates, impacting borrowing costs for homeowners.

Bank of Canada Policy

The Bank of Canada’s monetary policy decisions, particularly regarding the key interest rate, have a direct impact on mortgage rates. Changes in the key rate can lead to corresponding adjustments in variable mortgage rates.

Global Economic Conditions

Global economic conditions, including geopolitical events and international trade agreements, can influence market sentiment and, consequently, mortgage rates.

Housing Market Trends

Local housing market trends, such as housing inventory, demand, and home price appreciation, can also impact mortgage rates. A competitive housing market often leads to higher mortgage rates.

Canada Mortgage Rate Forecast for April 2024

On April 10th, the Bank of Canada will make its next rate announcement. The majority of forecasts suggest that the rate will remain at 5.00%. There’s a slim possibility that this statement may result in the first-ever 0.25% rate decrease. To avoid unduly undermining its progress in lowering inflation, the Bank will probably keep the key rate at its current level in the absence of a significant decline in the CPI. The Bank must exercise caution to avoid tipping the scales too far and resulting in a protracted downturn in the housing market and a decline in employment. 

Is 2024 a Good Time To Refinance?

In 2024, the decision to refinance your mortgage with Cashin Mortgage depends on several factors unique to your financial situation. Consider current interest rates, your credit score, and how long you plan to stay in your home. If rates are lower than your current mortgage rate and you plan to stay in your home for several more years, refinancing could save you money on interest payments. However, refinancing involves closing costs and fees, so it’s important to calculate your potential savings before making a decision. Consulting with a mortgage expert at Cashin Mortgage can help you determine if refinancing is a good option for you.

Predictions for Q2 2024

Looking ahead, several trends are expected to shape mortgage rates in Ontario, Canada, in the second quarter of 2024:

Continued Stability

With the Bank of Canada indicating a cautious approach to monetary policy, mortgage rates are expected to remain relatively stable in Q2 2024.

Gradual Increase in Fixed Rates

While variable rates are likely to remain steady, fixed mortgage rates may experience a slight upward trend in response to improving economic conditions.

Impact of Global Events

Ongoing global events, such as geopolitical tensions and supply chain disruptions, could introduce volatility in the market, potentially impacting mortgage rates.

Housing Market Activity

The level of activity in the housing market, including home sales and new construction, will continue to influence mortgage rates.

Final Thoughts

Borrowers in Ontario, Canada, can expect a relatively stable mortgage rate environment in the second quarter of 2024, with fixed rates potentially experiencing slight increases. Monitoring key economic indicators, global events, and housing market trends will be crucial for borrowers seeking to make informed decisions regarding their mortgages. As always, consulting with a mortgage professional can provide valuable insights tailored to individual circumstances. At Cashin Mortgage, we remain committed to empowering our clients with the knowledge, insights, and personalized solutions needed to achieve their homeownership and financial goals in the evolving landscape of real estate finance. Stay tuned for our ongoing updates and analysis as we continue to monitor developments in the mortgage market and provide valuable insights to guide your borrowing journey. Contact us for more information.