by Nutan Brown
on Monday, June 15th, 2020 at 8:54am.
The future of Toronto's housing market may be uncertain, but there are clear signs that activity might warm up heading into the summer.
According to the latest MLS data, home sales shot up by 55.2% from April to May with 4,606 transactions in the GTA. The number of new listings also increased by 47.5% compared to April, with a total of 9,104.
The average selling price rose 3% year-over-year from May 2019 to $863,599.
Since the spring market started later than usual, there’s a good chance that we’ll experience a busier summer market as a result.
While we don’t expect to see a record breaking year as was once predicted prior to the health crisis, we are optimistic that the housing market could accelerate as the economy reopens.
Stay tuned for more updates, and let us know if you have any questions or comments!
CMHC Tightens Mortgage Rules For Home Buyers
Earlier this month, the Canadian Mortgage and Housing Corporation (CMHC) announced changes to the eligibility rules for mortgage insurance.
The new rules will lower the amount of debt an applicant for an insured mortgage can carry, set a higher credit score to qualify for CMHC insurance, and will require a homebuyer to use their own, and not borrowed funds for their down payment.
This will affect buyers who are planning to purchase with less than 20% as a down payment, for it is these buyers who are obligated to have mortgage insurance.