The decline in the Toronto real estate market has taken a toll on the local economy, as job losses and rising costs have made it difficult for potential buyers to secure a mortgage. Many buyers have faced a steep decline in their savings due to the economic downturn, making it difficult to purchase a home. As a result, the demand for housing in the GTA has decreased, leading to a significant drop in sales.
Furthermore, the Bank of Canada raised its overnight rate in January, making borrowing even more expensive. This decision was largely aimed at cooling the real estate market, as higher interest rates make it more difficult to take out a mortgage. Additionally, the low inventory levels in the GTA have resulted in a decrease in new listings compared to the same period last year.
The decrease in housing affordability has had a ripple effect on the economy, as potential buyers are less likely to spend money on other goods and services. This has resulted in job losses and decreased consumer spending. It is important for potential buyers to consider their financial situation before making a purchase, as the current market conditions may be too difficult for some to handle.
Additionally, the government has implemented a range of incentives and programs to help potential buyers purchase a home. These include the First-Time Home Buyer Incentive, which allows eligible buyers to receive a 10% refundable tax credit on a portion of the cost of a new home. Furthermore, the Home Buyer’s Plan allows potential buyers to withdraw up to $35,000 from their Registered Retirement Savings Plans (RRSP) to help with a down payment.
It is important for potential buyers to consider the current market conditions and available incentives before making a decision. Although the market is currently experiencing a decline, the government has taken steps to make home buying more accessible. Those interested in purchasing a home should take advantage of the available incentives and programs while the market is still in a state of flux.