Home Sales Stats
Toronto homes in 2017 saw an increase of sales in October up 12%. Prices have somewhat stabilized from a nearly 25% drop from the peak in April, gaining some traction as of lately, as more “move-up” buyers are looking to purchase their next new homes before the new “stress test” initiates in January. This new regulation is estimated to reduce how much a Canadian can afford by 21% if he is looking to borrow a mortgage.
What may look like the beginning of a sustained recovery may be the start of further decline of house prices as fewer people will be able to afford the higher priced homes.
The Bank of Canada, along with all three levels of government need to put a block on further regulations and think about the long-term state of the market. These new government measures, taxes, rules, stress tests and increases in interest rates have created an uncertain and unstable market. Buyer confidence is at an all-time low, and builders are anxious and uneasy, which is why new construction project start dates declined by 40% in October, from September.
So what does all this mean to you, the reader? Well it varies on a case by case basis.
Here are some areas to consider:
• Your timeline: Are you in a situation where the sale of your real estate will fund your retirement? Consider selling sooner rather than later, as the risk of further real estate correction in prices can increase at any time.
• Is this going to be your primary residence or a rental income? Vacancy rates are at historic lows in Toronto since Millennials are opting to rent, as opposed to home ownership, which is quite unaffordable. This may help investors with a good capitalization rate, yielding investors with a respectable 6-10% return.
Whatever your needs may be, I strive on giving truly independent advice, always putting my client’s needs as my top priority, and representing your utmost interest in the sale or purchase of your real estate property.
Call me today and advise me of your requests, and we will do a thorough analysis of the market and the guidance for your real estate needs.