We are now half way into the year and have left the traditional spring market behind us. However this past spring market was nothing close to normal, when the Ontario government introduced Fair Housing Plan it had serious consequential impact.
Greater Toronto Realtors reported 7,974 sales in June 2017, compared with 12,725 sales in June, 2016. The sales volume is down 37.3% from last year. The number of new listings however was up by 15.9% compared to June, 2016. These numbers indicate that market conditions have created more supply and the average house is now taking longer to sell as some people have put their buying decisions on hold. However condo’s continue to increase in popularity due to the affordability of other home types.
We are still 25.3% up year over year for annual growth even with the recent month-to-month divergence. On July 12th, The Bank of Canada raised its interest rates by .25%, 1st time in almost 7 years putting the benchmark at .75%. All five major banks fallowed the change and increased their interest rates. RBC’s advertised rate for 5 year fixed is now 2.86%. There is a speculation that this interest rate is going to continue.
Right now its a wait and see approach as we move forward. The following governmental changes have created a mess, some people who bought homes are now in breach of contract because (1) they can not sell their property (2) they aren’t being qualified for mortgages.
If you are a home owner and you are looking to sell, this is still an appropriate time to get into the market since you can still capitalize on the high prices but you must be aware that the market has shifted and it will take longer than usual to sell. Your homes curb appeal matters more now than before as we are in a “ beauty pageant contest”, the majority of properties selling are the ones that have all bells and whistles.
If you are considering to purchase your new home or an investment property, you can still take advantage of historic low interest rate and lock in on the fixed mortgage. The governments intervention has succeeded and prices have whether temporarily or not have gone down significantly. Its also the best time to bargain and negotiate a good sale price.
As always don’t hesitate to call me for any of your real estate needs, whether selling or buying I can go over step-by-step the successful way of completing a sale, or if you just want to get some info on the market property I am a phone call away.
All the best,