Real Estate Cheat Sheet: the New York Times eyes Toronto’s towers; Drake lists his Yorkville condo
The top stories in Toronto real estate this week: what rising interest rates could mean for the housing market; how the New York Times unleashed a new round of condo-based hand-wringing; and why buyers keep on buying.
• Will rising mortgage rates send sales and prices plummeting?
Interest rates, which have been hovering near all-time lows for years, have recently started inching up and several economists say this may be the catalyst that eventually leads to Toronto’s housing bubble bursting. One expert predicts that a sustained rate increase of one per cent would send Toronto home prices down 5.8 per cent in the next two years. [Toronto Star]
• The New York Times takes note of Toronto’s hyperactive condo market
Although the story cites several reasons why the boom isn’t all bad, the words “American-style crash” sent local media into a panic. [New York Times]
• Prices are holding strong—for now
The Toronto Real Estate Board’s June numbers revealed that average selling price was up nearly 5 per cent, driven almost entirely by detached and semi-detached homes. The number of transactions in June was down less than one per cent, a much smaller decline than earlier this year. TREB says homebuyers who delayed making a purchase after the introduction of new mortgage rules last summer are now ready to buy. There’s also a possibility, however, that buyers are trying to fast-track their purchases before mortgage rates rise. [Financial Post]
• A condo developer is on a crusade to get rid of Captain John’s Restaurant
Lest condo buyers’ delicate sensibilities are offended by the sight of the rusting, barely-floating former eatery. [Toronto Star]