Well we are almost half way through the year and we are seeing a different market than the past few years. Prices have started to come down from the inflated days in 2016/2017. The Feds introduced this new First Time Home Buyer Incentive (FTHBI) where the government shares some equity in your mortgage with little clarity on how this program works since it was first announced. I highly doubt this program is going to help the average first time buyer which will go into effect in September. So many first time buyers I think are sitting on the fence waiting but to make it clear - this FTHBI is an interest free loan of 5% towards the purchase of a resale home . To be eligible, home buyers must qualify for a high-ratio mortgage and have a minimum down payment saved up (5% down for homes priced up to $500,000) They must have a combined income of NO MORE than $120,000 and the mortgage they are taking on cannot exceed more than four times their income at a cap of $480,000... including the portion the portion that is provided by the CMHC. This means that the maximum purchase price for a resale home is limited to $505,000 for a buyer making a minimum down payment for 5%.
So how many people fall into that category. Not many. I don't see how this is going to help many first time buyers. So if you are waiting for September to purchase, you may want to rethink this strategy. I am trying to write this in simple English to people understand it and less fluff !!! Anyone that knows me, knows I get right to the point. This may be helpful if you like Eastern Canada. LOL (No offence to people living in Eastern Canada) I am talking price points. Considering average sale prices in May of 2019 were over $900k in Toronto , it seems to be a lot of hooplah about nothing.
Now as for the Durham market - things are moving but slower than previous summers. Homes priced well are selling. Homes that are priced in last years prices are for the most part - sitting. Buyers have a lot of choice. The number of active listings are going up and in Pickering and Ajax were have over 300 listings for sale each, but in Markham we have over 1,200. York Region is getting hammered. The market is saturated there. If you would like set up to receive listings in your neighbourhood and SOLD prices, just shoot me an email or reply to this with your address and I will set it up for you.
Here is the last Market Watch for Durham Region:
I recently was at the City of Pickering Realtor Symposium which was a great venue to hear about what is coming to Pickering in the future and as we all know Durham Live has broken ground and should be up and running by 2020. You can actually see the construction from the 401 Eastbound. This is a $2 Billion Dollar entertainment district and a Casino will be in Phase 1. If you would like to know more about it - HERE IS THE LINK - https://www.youtube.com/watch?v=KSXUFXUCrMo&feature=youtu.be
Pickering Town Centre is also getting an overhaul. Sears wing is coming down and condos are going up. Also an exit at Whites Road is coming on the 407ETR with all the new builds coming to Seaton. So all in all, it is nice to see Pickering getting some future vision. Kabota has also set up shop in North Pickering. There are talks of a potential LRT as well. Pickering Council is saying potentially 10,000 new jobs coming to Pickering in the future and who knows with the Airport talks in the works.
Many of you may have noticed the new store on Kingston Rd in Ajax, called "SMOK" - this is Durham Region's first pot shop. Times are changing. Durham Region is to me one of the best values out there as we are closest to Toronto and our prices are very competitive and a lot lower than going west. Investing in Durham is a fabulous way to add to your wealth in my opinion. Over the next 10 years Durham Region is on the "upswing".
Interest rates are still low as well. New Home Prices seem to be flat. Builders are slashing prices and offering incentives to get you in there but keep in mind, the people in the sales office work for the Builder, not you !!!!
I hope everyone has a great long weekend - Happy Canada Day !!!! and Happy Birthday to me !! LOL - In case you were wondering why we have fireworks on Canada Day :)
Stay safe and remember I am here for all your real estate questions and needs.
Cheers to Canada !!!!
Your Friend in Real Estate,