Toronto’s red-hot real estate market was a feeding frenzy for investors. As the market cools, what will they do now?

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Toronto real estate sales are plummeting and home prices are dropping as interest rates continue to climb, pushing buyers and sellers to wait on the sidelines. But where are the investors?

Toronto real estate sales are plummeting and home prices are dropping as interest rates continue to climb, pushing buyers and sellers to wait on the sidelines.The pandemic market of the last two years resulted in a feeding frenzy for investors drawn to lower borrowing costs, experts say. For those who decided to sell, they were able to make substantial profit as prices soared. In recent years, those who own multiple properties became, overtaking first-time homebuyers, according to Teranet.

“One in three Canadians rent and with demand back up, this is the time for the rental supplier ,” Haider said. “But for speculators, because homes are on the market for longer it will take more time to sell a property and by the time the closing date arrives, they could be losing tens of thousands of dollars, so it’s not worth it.”

“The reality is investors love when they can secure a property at a discounted price and for so long it wasn’t an option,” he said. In October 2021, the interest on a five-year fixed mortgage was 1.79 per cent and now it’s 5.09 per cent. In December 2021, interest on a variable rate mortgage was sitting at 1.45 per cent, now it’s 3.45 per cent, he said.

 

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Investors are quarantined by zero Covid policy.

Long way to go

🦅

Investors? They're waiting for foreclosures bro

Turning housing into an investment rather than a human right, and building economies around building are mistakes.

Poll: Is the market at its 5-year peak?

Good! Hopefully this will help the middle class stay alive in Toronto!!

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