All you need to know regarding the housing market in Toronto, Canada and abroad.
This week in Toronto: The spring market heats up ahead of a real estate rule change, home prices in Toronto could turn negative as mortgage rates creep up and whatever happened to the Toronto duplex?
Elsewhere: Shadow flipping in Vancouver sets off alarm bells across the schedule, Morgan Stanley pays up for deceptive mortgage bond practices and urbanization is a major driver of the Zika virus.
As buyers rush to get ahead of real estate rule changes, spring market heats up (The Globe and Mail)
Last week’s Next Move chronicled the launch of a two-bedroom bungalow into the seething mass that is the Toronto real estate market. Listing agent Sandra Pate, who set an asking price of $679,900, was expecting lots of action because the home’s price put it in the target range of buyers who are most affected by an imminent change to rules surrounding mortgage insurance in Canada.
Thanks to an “upward drift” in mortgage rates, home sales in Canada’s two red-hot housing markets will cool this year — albeit from very high levels seen in 2015. “The lofty activity last year has likely left these two markets more vulnerable to even a gradual increase in interest rates and regulatory rule changes,” economist Diana Petramala wrote.
What ever happened to the Toronto duplex? (Toronto Star)
And as Toronto is, Boston is littered with early 20th-Century homes that over the years have been converted into two rental units. The units, once refurbished with de rigueurgranite countertops, typically afford owners a bit more space and more privacy than they might find in a high-rise tower.
Should this single mom rent or buy a Toronto condo? (Money Sense)
The upfront costs of buying a home could also be detrimental to your long-term plans; moving costs, land transfer tax, closing costs and legal fees will all add up. Continuing to rent while saving and investing any extra money may be the best option for you.