Is a Crash Coming Soon?

Thursday Apr 06th, 2017

The current GTA real estate market is seeing unprecedented record sales with prices continuing to increase weekly.

I am asked constantly if I think there will be a 'Crash'.

While there is definitely more demand than supply right now, I am seeing more inventory become available which will help with this frenzied market. I am also seeing 'Buyer Fatigue' impacting the market as a number of buyers take a break from shopping after having lost out on offers on multiple properties over the last few months.

I predict that there will be a 'softening' of the GTA market coming soon. I don't believe properties will see a large 'correction' in price, rather, there may be less people competing for the same properties which will allow a more sustainable increase to home values. The current rate of increased prices can't continue at this pace.

That being said, if you are thinking about selling, you might want to consider listing before the market changes and more inventory comes on the market. We are still seeing multiple bids on most properties.

Please continue reading below for more information on the following:

1.Changes to Tax Reporting Requirements Regarding the Sale of your Principal Residence;

2. Grab & Go - Cob Salad In a Jar Recipe;

3. Why Interest Rates Will Not Go Up in the Immediate Future.

Warmly,

Evelyn Lacerda, SALESPERSON
Real Estate | Relationships | Results

SALE OF A PRINCIPAL RESIDENCE MUST NOW BE REPORTED

The sale of a primary residence has long been immune to the taxman, thanks to the principal-residence exemption, which eliminates paying any capital gains on your personal home.

Up until now home owners did not have to report the sale of their principal residence on their tax return because there was no gain to report.

Starting with the 2016 Federal tax return, there’s a new rule requiring taxpayers to report the sale of their principal residence, whether they owe tax or not. On the CRA website, http://www.cra-arc.gc.ca, there’s a definition of what a principal residence is, as well as the qualifications that a property must meet. No plan has been announced to impose a tax on principal residences, however, it looks like the Canada Revenue Agency is wanting to track all real estate transactions.

COB SALAD IN A JAR

Ingredients:
2 tbsp. red wine vinegar
1 tsp. Worcestershire sauce
1 Garlic clove, minced
1 tbsp. Dijon mustard
1/3 c. plus 1 tablespoon olive oil (divided)
Freshly ground black pepper
Kosher salt
Cherry tomatoes, halved
½ lb skinless chicken breast
½ tsp. garlic powder
½ tsp. lemon pepper
4 eggs, hard boiled,quartered
4 slices crumbled bacon
1 avocado, chopped
1 tbsp. lemon juice
2 tbsp. chopped chives
½ c. crumbled blue cheese
2 large heads romaine, chopped

Dressing:
Whisk together red wine vinegar, mustard, garlic & Worcestershire sauce until evenly combined.
Gradually add 1/3 cup olive oil, whisking constantly until emulsified. Season with salt and pepper.

Method:
Heat remaining olive oil in a large skillet. Season chicken with garlic powder, salt & pepper and cook. Let rest for 10 minutes before chopping. Toss avocado in lemon juice. Pour 1-2 tablespoons in each mason jar. Add tomatoes on top of the dressing, then layer the rest of the ingredients in the jar, leaving the lettuce for higher up. Seal tightly,refrigerate for up 3-5 days. Shake vigorously before serving to distribute dressing.

SURPRISE! THE ECONOMY IS MOVING AS PREDICTED

Positive indicators led the way into 2017, and it looks like things are on-track for Q1. Economic numbers continue to meet and even slightly exceed expectations, with employment up, financial markets up and consumer confidence on the rise.

With all the positive news, forecasters are beginning to whisper about when the Bank of Canada will begin bumping the Key Rate higher. The BOC held the rate steady in March and it’s likely not to budge in April.

Inflation is the thing to watch out for, both here and south of the border. So far, inflation expectations are within range – even with the Bank of Canada’s new formula which looks through the transitory movement of total CPI inflation and focuses on a “core” inflation measure that better reflects the underlying inflation trend.

But there’s a bit of an unexpected twist – rising energy costs. What kind of inflationary pressures will it cause? And how will the Central Bank react? Look for a real push to keep interest rates low as everyone works together to keep the economy in growth-mode