Posted on: 08-03-04 22:17:47
hi,
i wanted to know if the cost of homes wil increase after 2 years?
and if it may increase what will be the persentage ?
thaNX
Quote:
Orginally posted by saba
hi,
i wanted to know if the cost of homes wil increase after 2 years?
and if it may increase what will be the persentage ?
thaNX
This is something no body can comment on with authority. There are so many factors affecting the cost of the housing. One of the main reasons of the ever increasing cost of housing for the last 6-7 years is attributed to increasing demand, flexibility in getting mortgage because of change in policies by CMHC for mortgage insurance, comparatively good economy of Canada in general and Ontario in particular. Above all, historically low rates of mortgage has been definitely a catalyst in increasing demand for ownership of houses, which has been driving prices up for the houses.
However, the interest rates are affected by so many factors and may not remain low for a long time and we might see them to start rising in later part of the year. As the rate would start rising, the demand may decrease which could check the rising prices and may stabilize them or may start driving them downward. Some experts think that the condo prices may start coming down in the next 6 months or so and the house prices may stbilize. Hence, no body can predict interest rates or cost of housing after 2 years, but historically the real estate prices have always risen all over in a long period of time but it is difficult to put a number to the percentage rate increase.
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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada
Right said in the last post by our mortgage expert that it is very difficult to predict future of housing market, interest rates, stocks etc. However the industry relies on experts who predict the future markets based on past data and its analysis.
According to March 6, 2004 article on housing predictions by Bill Carrigton in the Toronto Star the technical analysis concludes the following:
The GTA housing market will continue to climb this year and next. House prices must increase by an average of $1500 a month to maintain the momentum.
Another concern: interest rates. When mortage rates go up, affordability goes down. Fewer people are able buy houses, demand slakens and market softens. With the current five year rates in the 4.5 per cent range, we have lots of room for rate increases before affordability becomes an issue.
Bottom Line: Our positive price momentum advancing from a long base and the current low interest rate envoirnment suggests persistant price increases through this year and next.
Regards,
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Amit Kalia, Broker, REALTOR®
RE/MAX Real Estate Centre., Brokerage
independently owned & operated
100 City Centre Dr, Unit 1-702
Mississauga, ON L5B 2C9
Phone No.: 905-339-5111
Website: https://www.realestate-ontario.com/
Condo Blog: https://condopundit.com/blog/
