Demand for Detached homes in the outskirts of the GTA will slow down over the next couple of weeks. In Toronto, the Detached market will remain strong for a bit longer.
Condo sales will continue to skyrocket for 6-9 months +/- a few months.
Banks will start increasing their rates soon after following RBC’s lead.
There will be some nice discounts for variable mortgages.
Those who are smart should consider REFINANCE AND HOLDING ON TO CASH ASAP.
After the rapid price increases in the condo market begin to approach the condo townhouses, we will experience somewhat of a balanced market as all sectors year over year increases drop significantly.
There will be areas in the GTA with price decreases of 5-9% on Detached homes. Highest risk for luxury homes.
Those who get their preapprovals now and purchase Detached homes after June will likely be able to face less competition and may have an slight advantage compared to those approved after consecutive rate increase (big 5 banks – RBC etc).
If you’re waiting for a massive price drop, save your energy.
The Bank of Canada may surprise ‘some’ by increasing interest rates by .25%. This will happen steadily with a ‘watch and see approach’.
There will be some concerns about recovery due to massive debt due to covid-19 expenditure and other related affects on our economy.
Media will be posting stories about unaffordability and exaggerated claims of price drops. Rental rates will swing positively again.
This will be significantly worse should the borders reopen. Only positive would be an extended market for Freehold and condo homes. Still a positive nod to condos.
Government unions will be pushing for highest wages due to the increased cost of living. They’ll get it.
There will be MANY displaced Black renters. Government will create low income housing for low to middle income class. Risk of homelessness, poverty and crime amongst Black people increasing. In the GTA, expect Black families to consider leaving GTA or Ontario all together for affordable living.
Many newer or inexperienced real estate and mortgage agents giving up their licences and won’t make it after enjoying a year of ‘easy sales’.
The government will be coerced to increased min wages. However, due to the impact on small businesses, they’ll redirect funding towards rental housing and business grants. They’ll cater to the middle class.
This increase in supply would put a further damper on the condo market.
Instead of increasing min wage, it would make more sense to relax the stress test. That will create the second run up in prices and will result in the next surge in Detached homes.
Black people will miss the boat as either leaving the country or trying to save and may be caught off guard.
However, this group had already predicted the market 2 years prior, created ACRES Facebook sub groups for each profession (for networking and support) , investment (real estate and equity) and affordable housing (coop and rent to own) and invited members of the main group to each.
While in those groups, the real estate division presented investment opportunities and got to work with flipping homes from wholesalers, buying land for development and agriculture etc
They were surprised that many members were interested in cypto, forex stock and other markets. Our investment group always had seminars, so members were benefitting from both ends.
The cooperative model, meaning that all ACRES members own a piece of ACRES and are all entitled to one vote turned out to be the best model to move our agenda forward.
The partnership from CHMC, Black Federal Minister, local Black Deputy Minister, major banks who want to be visible on our website, credit unions and other Black organizations had yielded positive results.
The membership drive with a bonus of $100 per week to the member that invites the most Black people to the group turned out to be a success.
Well, that’s my post for the night.
Let’s see how this plays out as we move to the next phase for ACRES
Author: Chukwu Uzoruo (CEO)
This is my first blog ever and I haven’t proof read since it’s 1 am on a Saturday night. Just testing this out.