Housing Market Uncertainty Means Knowledge Is Key
In England, there is a saying that something secure and reliable is “safe as houses”. It’s a phrase that goes back to Victorian times and is generally representative of the belief that a house. “With its foundations, bricks, mortar and seemingly limitless growth in value” – this means trustworthy and dependable, meaning everyone should strive to own one.
The global recession in 2008 changed all that, with home equity wiped out for many homeowners who had previously paid over-inflated prices. The “property ladder” no longer seemed such a good idea – for many, it was now a financial trap rather than a lucrative investment. And with the collapse of the sub-prime mortgage market in the US, lending rules were tightened, and those people who still desired their own home found funding sources harder to come by.
Even today, 11 years after the crisis hit, the Canadian housing market is vulnerable to shifts in the economy. A new report by Central 1 Credit Union, analyzing the housing market in British Columbia, has forecast an 11% drop in sales this year, the lowest number since 2013. The resulting low prices would be good news for homebuyers except that they are still struggling to get finance. It is mainly due to the mortgage stress test previously introduced by the Office of the Superintendent of Financial Institutions.
Now, we have further warnings coming about the continuing unaffordability of housing in Toronto and Vancouver, and the possible impact of fixed mortgage rate changes in 2020. What has once considered a stable and conventional market is now one of ongoing uncertainty. Homebuyers – especially first-timers – need to be better armed than ever before with the necessary knowledge to avoid financial pitfalls.
“With everything that has hit the housing market over the past decade, it’s no wonder many homebuyers are anxious about taking those first steps on the property ladder,” said a spokesperson for Toronto real estate brokerage Justo.
“That’s why at Justo, we adopt a genuinely customer-focused approach when helping people buy or sell their homes. We are there to take customers through every step, providing advice, guidance, and support along the way. We also complement our personal-level approach with sophisticated, pioneering technology that ensures customers can make truly data-driven decisions.
“This includes state-of-the-art algorithms that review current market data and give customers accurate selling prices for their homes. Buyers can also be secure in the knowledge that we are abreast of the latest market trends.”
Justo is sharing its knowledge and experience with first-time buyers at a unique new event in Toronto on 4 June. “Master your first home purchase” is a free, two-hour evening event hosted by Justo and several other mortgages, real estate, and marketplace experts. It aims to use an interactive Q&A format to highlight common mistakes and offer best practice advice to first-time buyers.
“Customers put at least as much time, effort, and passion into buying or selling their homes as the industry experts do. It implies that it’s only fair to acknowledge that by giving something back,” added the Justo spokesperson. “That’s why we also share our commission 50/50 with customers. We go on the journey together with our customers when they buy or sell their homes. With our clients, we experience all the highs as well as the lows.”
You can contact Justo at +1 (647) 794-0064, and their website is at justo.ca.
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