As the fall season progresses I’m seeing further shifts take place.  It’s no secret that the OSFI implemented new mortgage regulations which are going to be implemented across the board on January 1 2018.  I’ve made a market forecast when this news first broke, and I’m already starting to see my forecast pan out.

Let me elaborate…

This new announcement is going to cause a frenzy initially in terms of people trying to get into the market while they are locked into their pre-approved lower rate, and also beat January 1, 2018, timeline for the new stress test.
Let’s take the foreign buyers tax implemented back in April as a foresight into what is to come once this news sinks in.  We saw prices slump, and the overall number of transactions bottom out once this news came into play.  I predict the new mortgage policy will have the same affect.  That being said, the new lending policy which is already being implemented by some major banks is going to slow a certain segment of the market, and I predicted this would be the $650,000-$1,1,00,000 segment.  These are the families which already have equity in their 1 bedroom condo or 1 plus den who are now looking to upsize to a 2 bedroom condo/loft or a small freehold home or townhome.
I’ve already noticed some properties within these price ranges miss their offer date and stay on market.  These properties would of 100% sold prior to the news breaking last week about new mortgage regulations.  These homes are un-renovated semi’s and row houses in the Junction Triangle, The Beaches, Upper Beaches… The immediate core is keeping hot and still moving quickly.
Fix’r uppers are still marinating on the market as speculators have calmed their pace, and families looking to get into the free-hold market often times are not up for a complete gut job.
The Condo market is keeping red-hot and moving very quickly all the way up to the $1,000,000 mark.  With the freehold market’s appreciation calmed… People are realising that currently condo’s are appreciating faster than free-hold homes, WITHOUT the maintenance!

If you’re looking to invest right now… Buy a small 2/3 bedroom freehold semi in The Junction, Junction Triangle, The Beaches, Danforth or Upper Beaches.  You have to go in a direction that the market isn’t to capitalize.