Housing Price wil increase by only one percent due to cyclical correction hold from last spring as per new report released by Royal LePage.
First-time homebuyers, who realtors and housing experts feared have been virtually locked out of the market by tighter mortgage lending rules imposed by Ottawa, “are adjusting to the new requirements by opting for cheaper homes or saving longer,” says the survey.
The lack of good inventories for sale in Toronto last year to meet demand helped boost the price of a two-storey home by 6.2 per cent, to an average of $668,133 year-over-year by the fourth quarter of 2012. A detached bungalow climbed 4.9 per cent, to $558,345, during the same one-year period.
"The pipeline of buyers in Toronto seeking single-family homes will remain strong throughout 2013,” according to Gino Romanese, a senior vice president with Royal LePage.
Royal Bank CEO Gord Nixon told in a banking conference that the real estate slowdown is having an impact on mortgage but that the market is likely to remain solid.