Just as we were all expecting interest rates to slowly rise, the BMO bank yesterday lowered its 5-year lending rate from 3.49% to 2.99%. Some individual mortgage brokers are now reducing the rate even lower (I can put you in touch with such a lender if you are thinking of buying or refinancing). So it is no wonder that we have a shortage of good listings and renters are turning into buyers. What an incredible opportunity! While good “condos” are selling quickly (desirable location and building, view, renos, balcony and reasonable maintenance fees), it is the detached housing market that really has an undersupply of good listings and multiple offers are almost the norm.
As a follow up on last month’s newsletter, I promised to reveal Toronto “growth issues” looking ahead, as presented in a meeting by Barry Lyon, Canada’s top Condominium Consultant to developers:
· Continued growth is assured
· Traffic congestion (vehicular and pedestrian) will get worse. Transit can’t do it all!
· Aging infrastructure
· Maintaining and/or improving affordability is a big challenge
· Providing for the evolution of housing needs, including families
· Providing infrastructure for 13,000 to 16,000 new condos per year
· Ensuring and retaining employment lands (for office buildings)
· Maintaining Toronto’s livability