Declining oil and blooming US economy is set to boost real estate by a whopping 17% till the end of 2017. This presents an opportunity for investing in property and earning record gains.
The world is getting more and more interconnected. An event in the east can produce a ripple effect in the eastern markets as well. The Toronto real estate market is also sensitive to the events in Canada and other countries; an assessment of the events gives an idea of the future trends and helps in gauging of the real estate market sentiments. The real estate prices in Toronto are already at a high and experts were predicting a slowdown if the property bubble bursts, but the global events like slump in oil economy in the middle-east and improving US economy may boost the real estate prices further to a new high.
The main driver behind the future prospects is the rising demand for property and gap between the demand and supply in Toronto real estate market. The expected rise in property prices is much more than the inflation estimates and therefore, it presents a great opportunity for investing in the real estate market and earning good returns within a short period.
The buyers can also look for mortgaging the home as the expected hike in property prices would easily surpass the payment towards mortgage interest. Chief economist of the central 1 credit Union has predicted a 17% increase in the real estate prices in Toronto. You can use Mortgage calculator to estimate your mortgage payment, with taxes and insurance.
The real estate markets in Toronto have underperformed since 2001 and have scope and potential to rise in the event of slumping oil economies and other global turnarounds. The slumping oil economy will boost Canada’s interest as our exporters and manufacturers will get more opportunities for the international trade.
The economic forecasts are predicting that the home prices of $573,183 in 2014 could see a rise up to $670,000 by the end of year 2017. The improving prospects for the manufacturing sector in Canada could support communities involved in manufacturing such as Sarnia and Windsor. Along with this the south western Ontario may witness seismic shift in the economic activity. These events will work as a good platform for the real estate market growth.
A faster growing US economy will have a positive influence on the Canadian real estate market. The interest rates are slowly coming down that will further enhance the ambitions of the people associated with the property market.
After the 2008 recession, the markets have been sceptical and have adopted a wait and watch policy rather than a proactive approach. Teranet-National Bank house price index has published in their May addition from last year to this year the home prices have gone up by as much as 28.7% and from April to May the jump is around 3.6%. The numbers are in line with the growth prediction for the Toronto real estate markets in 2017.
The interior areas and outskirts have are also showing sign of development and housing projects are coming up thick and fast. This may drive the market sentiment for real estate prospects in Canada. Some of the economists have also given a negative forecast for the housing sector. David Madami of Capital Economics has stated that “The housing boom is over, with a correction in prices coming.” But the overall mood of the real estate market is positive and steady for growth. Moreover the global factors of oil economy slowdown and strong US markets have bolstered the Toronto real estate trends and future prospects.
In conclusion, it can be said that the present market scenario presents a good opportunity to invest in real estate sector. The positive growth forecast can assure the buyers of a good return on their investment within a short period. The buyers should take professional assistance to figure out the best locations and properties for investment. The declining trend of the interest rates in Canada will ensure that mortgaging the home will have minimum risk and financial burden. Additionally, inflation rates are not too high as compared to the expected rise in the real estate market; this will ensure best returns on the property investment.