The average selling price of all homes in the Greater Toronto Area was $746,218, up 5% from a year ago.
The decline in activity has less to do with foreign buyers and more to do with potential homebuyers waiting to see how the market plays out.
“Clearly, the year-over-year decline we experienced in July had more to do with psychology, with would-be home buyers on the sidelines waiting to see how market conditions evolve.
Is waiting on the the back bench the right option. Starting January 1, 2018 the New Mortgage stress test comes into effect on buyers seeking a mortgage with 20% down or great. If you are currently in the market to buy a home for $7000,000. will will be in the market come January 1 for a home that is $500,000.
Under federal rules, consumers with less than 20 per cent down must get mortgage default insurance which protects banks in the event of default. CMHC is the largest player in the sector followed by private entities Genworth Canada and Canada Guaranty. This rate will be at 4%.