While the Conference Board suggests a price adjustment is possible if mortgage rates start to climb higher, the result is likely to be a soft landing
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Toronto, Canada (PRWEB) March 27, 2014
NLCi Your Real Estate Lawyer Professional Corporation (http://www.NLCiLawyer.com), Scarborough’s leading provider of real estate and corporate legal services, is responding to a new report showing Toronto is not in a housing bubble.
According to a recent report, the Conference Board maintains that the Canadian housing market is neither overpriced nor overbuilt. In fact, they argue that housing starts in the last three years are in line with the 20-year average; even in Toronto, there is only a borderline case it could be overbuilt. As a result, the Conference Board believes only some Canadian market segments are due for a modest correction. (Source: Beltrame, J., “No housing bubble to burst, Conference Board says in major survey,” The Toronto Star, March 24, 2014.)
“While the Conference Board suggests a price adjustment is possible if mortgage rates start to climb higher, the result is likely to be a soft landing,” says Yasmin Nakhuda, lead counsel at NLCi Your Real Estate Lawyer Professional Corporation. “That certainly doesn’t mean the Toronto real estate market is inexpensive or easy to navigate.”
The average selling price on Toronto’s multiple listing service (MLS) in February was $553,193, an 8.6% year-over-year increase, while house sales were up just 2.1%. The reality of the situation is that there is increased demand, but little supply. (Source: Pigg, S., “Shortage of new listings fuelling desperation among Toronto home buyers,” The Toronto Star, March 5, 2014.)
“Even under the most ideal conditions, it can be difficult to navigate the often-confusing process of applying for a mortgage and buying a house, and buying one in this red-hot market can be all that much more stressful,” Nakhuda explains. “Unfortunately, many potential homebuyers don’t consider bringing a lawyer into a deal until the closing, but the fact is that hiring a lawyer early on in the process, whether it’s for an existing home or a new build, can save home buyers time, risk, and money.”
For starters, she adds, lawyers are unbiased and objective when it comes to getting clients into a home because their legal fees aren’t motivated by the sale price of a house. Lawyers are also experienced at reading closing documents and determining whether the use of certain words will mean a buyer takes on additional, unexpected costs.
“On top of that, a real estate lawyer looks out for their client when it comes to ensuring the buyer gets the financing they need; after all, there’s a big difference between getting a mortgage rate of six percent and 3.25%,” Nakhuda concludes. “Not using the proper terms can mean a buyer is forced into closing on a home simply because the offer was phrased ‘conditional on financing.’”
NLCi Your Real Estate Lawyer Professional Corporation is conveniently located on Ellesmere Road in the heart of Scarborough and has been providing real estate and corporate legal services since 1999. The firm has significant experience in residential and commercial real estate law, business incorporation, affidavits, sponsorships, statutory declarations, wills, and notary services. To better serve the needs of Toronto’s growing population, NLCi Your Real Estate Lawyer Professional Corporation speaks English, French, Hindi, Urdu, Gujarati, Sinhalese, Tamil, Punjabi, and Creole. To learn more about NLCi Your Real Estate Lawyer Professional Corporation, visit the company’s web site at http://www.NLCiLawyer.com or call 416-292-4667.